Buffalo, N.Y. (WBEN) - Late last week, Federal Reserve Chair Jerome Powell opened the door to lowering interest rates in the coming months, saying the balance of risks have started to shift across the economy.
Those risks, Powell said, include weaker payroll gains and concerns about the pace of job growth.
"Up to this point, Powell's speeches have been pretty firm on 'We are bringing inflation down to 2%,' but in this speech he is maybe starting to look more at the employment side of things," said Michael Angelucci of Level Financial Advisors.
Have concerns over the labor market intensified, or is the Fed simply feeling the heat from continued pressure from the President?
"I don't think so," Angelucci said with WBEN. "Congress is going to hold him accountable to the employment numbers too. It's not just the President, it's Congress too."
Angelucci says Powell is in a "tough spot" trying to balance the need to bring down inflation numbers while keeping an eye on the labor market.
U.S. employers have added fewer jobs on a monthly basis this year compared with the pace held in recent years. Add to that a surge in people who have been searching for a job for more than 27 weeks, or "long-term job seekers," which have risen 20% from a year ago, and the cause for concern is easy to see.
The next Federal Reserve meeting is scheduled for Sept. 16, with an interest rate decision on Sept. 17.