Fed Chair Jerome Powell warns of rising risk to US labor market

Federal Reserve Chair Jerome Powell has cautioned that the US jobs market faces growing pressure while tariffs are feeding inflation, though their impact may prove temporary. In a closely watched speech at Jackson Hole, Powell left the door open to an interest rate cut in September but stressed the Fed must balance the risk of higher prices with signs of weakening employment. His remarks, delivered amid political pressure from President Trump, highlight a pivotal moment for US monetary policy.