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Federal Reserve Chairman Jerome Powell pointed to the migrant crisis as a cause for growing unemployment.

“If you’re having millions of people come into the labor force, then — and you’re creating 100,000 jobs — you’re going to see unemployment go up,” Powell said during a news conference after the Fed decided to cut interest rates for first time since 2020.

“So it really depends on what’s the trend underlying the volatility of people coming into the country,” he added.

The slowing hiring rate is also a factor behind the growing unemployment, Powell said.

“We understand there’s been quite an influx across the borders, and that has actually been one of the things that’s allowed the unemployment to rise,” he said. “And the other thing is just the slower hiring rate, which is something we also watch carefully. So it does depend on what’s happening on the supply side.”

The unemployment rate is currently 4.2% and the Fed predicted that it will rise to 4.4% at the end of the year.