Fed Unofficial Spokesman Timiraos: "Job Market Slowdown Will Put High-Interest Policy to the Test"
Summary
- Journalist Nick Timiraos assessed that the recent job market slowdown could be a major test for the Fed's interest rate policy.
- He stated that the slowdown in employment over the past three months and the downward revision of May–June job figures have created room for the Fed to consider a rate cut at the September FOMC meeting.
- Some senior Fed officials have also publicly expressed concerns about labor market weakness and the need for a rate cut.
Nick Timiraos, a journalist at The Wall Street Journal (WSJ) who is known as the unofficial spokesman of the U.S. central bank, the Fed, recently assessed that the slowdown in the job market could become a major test for the Fed's policy stance on benchmark interest rates.
According to crypto-specialized media BlockBeats on the 1st (local time), Timiraos said, "The recent three-month slowdown in jobs has opened up room for the Fed to consider a rate cut at the September Federal Open Market Committee (FOMC) meeting."
Earlier that day, the U.S. July nonfarm payroll figure rose by 73,000 compared to the previous month but fell short of expectations. Furthermore, the increases for May and June were also revised down by 258,000 compared to previous announcements.
Timiraos emphasized, "With the May and June employment data being significantly revised downward, the Fed's long-standing perception of a 'solid job market' is now being shaken."
Recently, some senior Fed officials have also publicly raised concerns about labor market weakness and mentioned the need for a rate cut.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
