Federal Reserve's Missed Opportunity: Interest Rate Cut Consideration and July Jobs Report

Federal Reserve Chair Jerome Powell stated that the Fed might have cut interest rates in late July if they had seen the month's job report earlier. The report, released days after the meeting, indicated a weakening U.S. labor market. Rates were later cut by 50 basis points.

Federal Reserve Chair Jerome Powell revealed on Thursday that the central bank might have opted to cut interest rates in late July had it reviewed the month's jobs report beforehand. Released shortly after the meeting, the report highlighted a softening U.S. labor market.

During a press conference, Powell discussed the decision, stating, 'If you ask, you know, if we'd gotten the July report before the meeting, would we have cut? We might well have.'

The Federal Reserve eventually decided to reduce rates by 50 basis points, a move reflecting considerations of the labor market's condition.

(With inputs from agencies.)