Federal Reserve Officials: Employment is Cooling, but Room for Rate Cuts is Limited — Inflation Risks Cannot Be Ignored

【BlockBeats】Federal Reserve official Bostic’s recent remarks have attracted market attention. He mentioned that he initially hoped the last meeting could keep policy unchanged, but the current situation has become more complicated.

The labor market is indeed cooling. Data shows that employment is experiencing cyclical adjustments. However, he also emphasized that there are no obvious signs of a significant economic downturn at the moment. In other words, the slowdown in employment is a fact, but expectations of a Great Depression may be exaggerated.

The key here is the room for rate cuts. Further rate reductions would push monetary policy into a truly easing zone. Once in, inflation and inflation expectations could be broken. In simple terms, the risk of continued easing is increasing—this is also the reason they are now stepping on the brakes.

For the market, this sends a clear signal: the Federal Reserve will not remain easing indefinitely, and a policy turning point has arrived.