"While the labor market appears to be in balance, it's a curious kind of balance that results from a marked slowing in both the supply of and demand for workers," Powell said.

Jerome Powell gave a slight hint of possible interest rate cuts in the future as he warned about a gloomier economic outlook, in part due to tariffs, CNN reported.

Mr. Powell stressed, however, that inflation was still too high even as he sought to push back on concerns that Mr. Trump’s tariffs would lead to a persistent rise in price pressures.