Powell signaled support for another rate cut later this month as the U.S. job market cools.

Federal Reserve Chairman Jerome Powell warned on Tuesday that the U.S. labor market is showing further signs of distress, suggesting he may be ready to support another interest rate cut later this month. "Downside risks to employment have risen," Powell noted, the strongest hint yet that Fed officials believe they have enough evidence to support another 25 basis point cut in U.S. borrowing costs. Powell added that even without new Bureau of Labor Statistics data (delayed by the government shutdown), privately produced job market indicators and internal Fed research provide enough reason to suggest that the job market is cooling. "Existing evidence" shows that "layoffs and hiring remain low," while "households' perceptions of job opportunities and businesses' perceptions of hiring difficulties continue to trend downward." The comments suggest that Powell has become more dovish on monetary policy. (Jinshi)