Home / Business and Economy / Powell Hints at More Rate Cuts Amid Labor Cooling
Powell Hints at More Rate Cuts Amid Labor Cooling
12 Dec
Summary
- Benchmark 10-year Treasury yield rose to 4.168%.
- Fed chair cited ongoing labor market cooling as factor.
- US dollar weakened, hitting multi-month lows against the euro.
Benchmark Treasury yields experienced a rise, with the 10-year Treasury yield climbing to 4.168% and the 30-year yield reaching 4.822%. This movement reflects investor reactions to the Federal Reserve's recent rate decisions and anticipation of future policy shifts under a potentially more dovish leadership.
Fed Chair Jerome Powell highlighted that the labor market continues its gradual cooling, citing declining labor supply and demand in recent surveys. He suggested that if this trend persists and the labor market does not improve, the central bank might lean towards further interest rate cuts.
In related news, the U.S. dollar saw a weakening trend, falling to multi-month lows against the euro. The Federal Reserve also concluded speculation regarding its regional leadership by reappointing 11 of its 12 regional bank presidents.
