U.S. Media: Powell Faces a "Delicate Balance" Between Employment and Prices in His Final Term

Odaily News The Wall Street Journal commented on the U.S. January CPI report, noting that the CPI rose 2.4% year-on-year in January, lower than the previous value and market expectations; excluding the more volatile food and energy categories, the core CPI rose 2.5% year-on-year, meeting expectations. The non-farm payroll report released earlier this week showed that January job growth exceeded expectations and the unemployment rate fell to 4.3%. Although slowing inflation and robust employment are favorable, the Federal Reserve, in the final months of Chairman Powell's eight-year term, still faces a delicate balancing act: it must curb inflation without harming the labor market. Aggressive interest rate hikes successfully countered the price surge in 2022, but as inflation subsides and the job market cools, the Fed has cumulatively cut rates by nearly 2 percentage points since the summer of 2024 and paused in January. With increasing signs of easing price pressures, economists widely expect inflation to trend lower further in 2026. (Jin10)