Powell hints that unemployment must rise by more than 0.2 percentage points before the Fed will cut rates

Odaily Odaily reported on May 2 that according to the Wall Street Journal, Federal Reserve Chairman Powell said on Wednesday that unexpected weakness in the labor market may prompt the Federal Reserve to cut interest rates. How weak does this require the job market to be? Powell believes that the unemployment rate (currently 3.8%) must rise by more than 0.2 percentage points before the central bank will shift its attention away from inflation. Powell said at the latest press conference today, "This must be meaningful and get our attention, so that we think that the labor market is indeed weakening significantly, and we will respond to it. An increase of two-tenths in the unemployment rate may not attract our attention." On Friday, the U.S. Department of Labor will release non-farm payrolls data for April. Economists surveyed expect the unemployment rate to be 3.8%, the same as in March. (Jinshi Data)