Powell warns of a ‘very unusual’ economy as tariffs keep goods inflation high amid a weakening labor market

FortuneWednesday, December 10, 2025 at 9:50:08 PM
Powell warns of a ‘very unusual’ economy as tariffs keep goods inflation high amid a weakening labor market
  • Federal Reserve Chair Jerome Powell has expressed concerns about the current economic landscape, describing it as 'very unusual' due to high goods inflation driven by tariffs and a weakening labor market. He indicated that actual job growth may be below zero, with official payroll figures potentially overstating employment by tens of thousands each month.
  • This warning from Powell is significant as it suggests that the Federal Reserve may need to reconsider its monetary policy strategies, particularly in light of the declining private payrolls and the potential for interest rate cuts to stimulate the economy.
  • The broader economic context reveals a troubling trend of stagnation in the labor market, with companies hesitant to announce mass layoffs despite low hiring rates. This situation, compounded by rising inflation and affordability crises, raises concerns about the overall health of the economy and the effectiveness of current fiscal measures.
— via World Pulse Now AI Editorial System

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