Fed keeps interest rates steady. But cuts aren’t far off.

𝐅𝐄𝐃 𝐑𝐚𝐭𝐞 𝐂𝐮𝐭𝐬? It’s the same ol’ press conference we have seen over the past few months.

“We are maintaining our restrictive stance of monetary policy in order to keep demand in line with supply and reduce inflationary pressures.” - Powell’s opening comments today.

He stated that FOMC decided to keep the interest rate at the 5.25-5.5%. No change.▪ Recent indicators say that economic growth was still at a moderated pace.▪ The Inflation rate is still holding at 2.5%.▪ The labor market continues to cool.▪ Unemployment rate is up but still low at 4.1%.

𝐇𝐢𝐬𝐭𝐨𝐫𝐢𝐜𝐚𝐥𝐥𝐲, 𝐚 𝐜𝐨𝐨𝐥𝐢𝐧𝐠 𝐥𝐚𝐛𝐨𝐫 𝐦𝐚𝐫𝐤𝐞𝐭 𝐜𝐚𝐧 𝐬𝐩𝐞𝐥𝐥 𝐭𝐫𝐨𝐮𝐛𝐥𝐞 𝐟𝐨𝐫 𝐰𝐨𝐫𝐤𝐞𝐫𝐬.The last major economic downturn in 2008 saw unemployment rates soar to 10% in 2009, devastating millions of households. The Federal Reserve’s rate cuts back then took years to stabilize the economy, and many workers never fully recovered. My experience over the years in the career world since the 2008 financial crisis has shown me firsthand the emotional toll and uncertainty faced by candidates during times of economic upheaval.​ It's what they face today.The CBO report forecasts unemployment to hit 4.7% by December. That's the scary part.

Powell also reiterated that the US job market is now about as it was before the pandemic, “𝘀𝘁𝗿𝗼𝗻𝗴 𝗯𝘂𝘁 𝗻𝗼𝘁 𝗼𝘃𝗲𝗿𝗵𝗲𝗮𝘁𝗲𝗱.” He added, “If the labor market were to weaken unexpectedly or inflation were to fall more quickly than anticipated, we are prepared to respond.”But his last statement says it all:“If the economy remains solid and inflation persists,” the Fed could keep rates where they are as long as needed, Powell says.While steady rates may signal stability, the cooling of the labor market could lead to significant challenges for workers. 𝐖𝐞’𝐯𝐞 𝐬𝐞𝐞𝐧 𝐭𝐡𝐢𝐬 𝐦𝐨𝐯𝐢𝐞 𝐛𝐞𝐟𝐨𝐫𝐞.