Powell: Dramatic reduction in labor supply affecting job market

Fed's Powell: If we see data labour market is stabilizing, or strengthening, it would play into policy decisions. Fed's Powell: Not seeing an uptick in claims, or a downtick in openings, suggests gradual cooling, gives some comfort. FED’S POWELL: IF THERE WERE A SIGNIFICANT CHANGE IN THE ECONOMY, WE WOULD LIKELY DETECT IT Fed's Powell: If there is a high level of uncertainty, that could be an argument for caution on moving. Fed's Powell: For today's rate cut, a strong, solid vote, and the strongly differing views were really about the future.

POWELL: ANOTHER CUT IN DECEMBER IS FAR FROM ASSURED Fed's Powell: Strongly differing views at meeting about how to proceed. FED’S POWELL: IN DECEMBER, FED WILL ENTER THE NEXT BALANCE SHEET PHASE AND HOLD STEADY FOR A PERIOD FED’S POWELL: REINVESTMENT STRATEGY WILL ALIGN WEIGHTED AVERAGE MATURITY MORE CLOSELY WITH THE STOCK OF OUTSTANDING SECURITIES FED’S POWELL: NO DECISION MADE YET ON DECEMBER MEETING; FURTHER RATE REDUCTION IS NOT A FOREGONE CONCLUSION, WITH STRONG VIEWS AND TENSION BETWEEN POLICY GOALS ACROSS THE COMMITTEE

Fed's Powell: Tension between two goals, and strong views across committee. *POWELL: FED HAS NOT MADE A DECISION ABOUT DECEMBER MEETING FED’S POWELL: TODAY’S RATE CUT WAS A RISK-MANAGEMENT MOVE; DECISIONS GOING FORWARD WILL BE A DIFFERENT MATTER Fed's Powell: We can't address both employment, inflation risks with our one tool. FED’S POWELL: NOTES TIGHTENING IN MONEY MARKETS OVER THE PAST THREE WEEKS; ASSESSES RESERVES AS ONLY SLIGHTLY ABOVE AMPLE AND SEES LITTLE BENEFIT IN FURTHER BALANCE SHEET REDUCTION