Labor market still robust, not “in trouble”: Philly Fed President

A rate cut by the Federal Reserve can have several effects on the entire U.S. economy, including the labor market. Speaking at the Jackson Hole Economic Symposium on Friday morning, Federal Reserve Chairman Jerome Powell said the “time has come” to initiate rate cuts.

While the economy may have to prepare for interest rate cuts after such a long period of high interest rates, the question arises whether the labor market can adapt just as quickly.

Patrick Harker, President of the Philadelphia Fed, discusses with Jennifer Schonberger the impact of interest rate cuts on the labor market and the even broader consequences of a recession.

“I hate to use the word unprecedented rate, but it is true. Where we are now, we can look to history as a kind of guide, but it is not The guide,” explains Harker. “Think about what we've been through – we've caught up a lot in the labor market.”

Watch Federal Reserve Chairman Jerome Powell’s full speech here.

Click here to watch the full episode of Wealth and learn more about expert insights and the latest market activity!

This article was written by Nicolas Jacobino