Fed Chair Powell says rising inflation and slow hiring pose ‘challenging situation’

(WASHINGTON) — Federal Reserve Chair Jerome Powell warned a recent uptick of inflation, alongside a hiring slowdown, poses a “challenging situation” for central bankers as they aim to steer the U.S. economy through a “turbulent period.”

The Fed, which opted to cut interest rates last week, is guided by a dual mandate to keep inflation under control and maximize employment. Speaking at the Greater Providence Chamber of Commerce, in Providence, Rhode Island, on Tuesday, Powell said a sharp cooldown of hiring over the summer had shifted the balance of risks toward greater concern over the labor market.

“The downside risks to employment have risen,” Powell said.

The remarks came days after the Fed cut interest rates for the first time this year in an effort to boost hiring. The Federal Open