The Fed also had to cut staff.

Although Federal Reserve Chairman Jerome Powell regularly reassures the public about the economy , the agency itself is cutting staff.

A Fed spokesperson confirmed to CNN on September 22 that the agency will cut about 300 jobs by the end of the year, a rare reduction in staff and the first since 2010. The Fed currently has about 21,000 employees at 12 regional branches.

The cuts will take a variety of forms, including layoffs, early retirements and not filling open positions, a Fed spokesperson said. The Fed did not say how many people would be laid off. The positions being eliminated will be mostly support roles, such as technology that is not currently needed.

The news comes just days after Mr Powell expressed surprise at the strength of the US economy amid high inflation and soaring interest rates.

“Economic activity is stronger than we thought. I think everyone saw that,” Powell told reporters at a press conference after this week’s policy meeting. Reflecting that optimism, Fed officials increased their forecast for US GDP this year and lowered their estimate for the unemployment rate. They also decided to keep their benchmark interest rate unchanged.

However, Powell also said that there is no guarantee that the US will have a "soft landing", and that inflation will only decrease to a sustainable level if the labor market continues to "cool down". A soft landing is a situation where inflation is contained but does not cause a recession.

Powell said this was “possible,” but “could be determined by factors beyond our control.” For example, rising energy prices could still push up inflation. The U.S. auto workers’ strike also caught the Fed’s attention, given its impact on the labor market.

Ha Thu (according to CNN)

Source link: https://vnexpress.net/fed-cung-phai-cat-giam-nhan-su-4656539.html