Federal Reserve Chair Jerome Powell warned that a sharp slowdown in hiring poses a growing risk to the U.S. economy, signaling that the Fed is likely to cut interest rates twice more this year.

Despite the government shutdown limiting economic data, Powell said the outlook for employment and inflation remains largely unchanged since the September rate cut.

Lower rates would reduce borrowing costs for consumers and businesses, potentially supporting job creation and spending.

Powell also indicated the Fed may stop shrinking its $6.6 trillion balance sheet, which could affect long-term Treasury rates, CBS News has reported.

Additionally, he defended the Fed’s pandemic-era bond purchases, acknowledging in hindsight that the program could have ended sooner but emphasizing it prevented a market breakdown.