The Globe and Mail reports in its Wednesday, Oct. 8, edition that the Federal Reserve's interest rate cuts aim to soften the impact of a potential labour market crisis, but cheaper money may not achieve this and could instead fuel a rally in financial assets. A Reuters dispatch to The Globe reports that Chairman Jerome Powell cites job growth decline as a reason for easing, as it risks spiralling into rising unemployment, reduced consumption and recession. However, the federal funds policy rate is a blunt tool, and its current use carries asymmetric risks that lean toward negative outcomes, largely due to imbalances in corporate and economic America, where consumption is driven by the wealthiest households. The Fed is easing monetary policy with U.S. financial conditions the loosest in over three years, credit spreads the tightest since 1998, inflation a percentage point above target, and GDP growth running at an annualized rate of about 3 per cent or higher. In financial markets, the "everything" rally is in full flow -- Wall Street's big three indices are all at record highs. It is uncertain if the expected 100-basis-point rate cuts will boost hiring in this environment.