Oct. 3 at 5:31 PM
The U.S. unemployment rate stands at 4.3%, but the figure masks structural issues. Immigration slowdowns have reduced labor supply in sectors like construction, agriculture, and services, pushing up wages locally, while overall labor demand weakens due to tariffs and global uncertainty.
The Fed cut rates by 0.25% in September as a precaution, aiming to cushion the economy from a sharper slowdown. Chair Jerome Powell emphasized that aggregate unemployment and inflation figures no longer tell the full story—labor supply, participation, and wage dynamics now weigh heavily in policy decisions.
Globally, lower U.S. yields are driving inflows into emerging markets, but these remain volatile amid U.S. fiscal pressures. The Fed’s move signals a new era of central banking, focused on structural shifts and flexibility rather than headline statistics.
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