Powell hints that the Fed is shifting policy focus from inflation to employment

BlockBeats News, on September 18, Federal Reserve Chairman Powell stressed that given the signs that the labor market is "really cooling down", the Federal Reserve is inclined to "maximize employment" in its dual mission after long-term focus on inflation. He said the risk of continued high inflation has been lower since April, partly due to slower employment growth. The Fed's basic assumption is that the impact of tariffs on inflation may be short-lived. On the other hand, the downside risks in the labor market have risen, and new jobs appear to be below the so-called "break-even rate" required to keep the unemployment rate unchanged, he said. (Jin Shi)