Federal Reserve Chair Jerome Powell cautioned on Tuesday that a continued drop in job openings could lead to rising unemployment rates.
Speaking at a National Association for Business Economics event in Philadelphia, Powell noted that the labor market has reached a point where "further declines in job openings might very well start to show up in unemployment" in terms of increasing joblessness.
Powell also addressed immigration trends, stating that "changes to immigration have been stronger than many expected." He mentioned there is anecdotal evidence of industries struggling to find workers, though this challenge is not yet reflected in wage data.
On monetary policy, Powell clarified that while the Fed monitors overall inflation, it does not specifically target housing prices. He added that the central bank would not use mortgage-backed securities purchases as a direct tool to influence mortgage rates.
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