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Fed Vice Chair Jefferson warns weakening job market, supports recent rate cut, projects two more cuts.
Federal Reserve Vice Chair Philip Jefferson warned the U.S. job market is weakening, with rising unemployment and softening hiring, raising concerns about potential stress without policy support.
Speaking in Helsinki, he backed a recent 25-basis-point rate cut, citing 1.5% projected growth for the rest of 2025 and inflation expected to return to the 2% target.
He highlighted uncertainty from evolving trade and immigration policies, including tariffs that could worsen inflation, while noting current inflationary impacts have been less severe than forecast.
The Fed's benchmark rate is now 4%–4.25%, with two more cuts projected.
El vicepresidente de la Fed, Jefferson, advierte del debilitamiento del mercado laboral, apoya el reciente recorte de las tasas, proyecta dos recortes más.