The Fed also had to cut staff.

Although Federal Reserve Chairman Jerome Powell frequently reassures the public about the economy , the agency itself is reducing its workforce.

On September 22, a Fed spokesperson confirmed to CNN that the agency will cut approximately 300 jobs between now and the end of the year. This is a rare instance of staff reduction and the first time since 2010. The Fed currently has around 21,000 employees across 12 local branches.

A Fed spokesperson said the cuts include various forms, including layoffs, early retirement, and not rehiring for vacant positions. The Fed did not specify how many people would be laid off. The positions being reduced are primarily support roles, such as those in technologies that are no longer needed.

This news comes just days after Powell expressed surprise at the strength of the U.S. economy amid high inflation and soaring interest rates.

"Economic activity is stronger than we anticipated. Perhaps everyone sees it that way," Powell told reporters at a press conference following this week's policy meeting. Reflecting that optimism, Fed officials raised their forecast for U.S. GDP this year while lowering their unemployment rate estimate. They also decided to keep the benchmark interest rate unchanged.

However, Powell also stated that there is no guarantee that the US will have a "soft landing," and that inflation will only fall to sustainable levels 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 assessed this as "possible," but "it could be determined by factors beyond our control." For example, rising energy prices could still push inflation higher. The strike by US auto workers also drew the Fed's attention, due to its impact on the labor market.

Ha Thu (according to CNN)

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