Economy and Markets: Fed's Shift from Inflation to Labor Market Concerns

Thursday, 19 September 2024, 07:01

Economy and markets have taken a notable turn as the Federal Reserve's rate decision underscores a shift in focus towards the labor market. The significant interest-rate cut indicates that the Fed is responding to potential economic slowdown concerns. The latest adjustment reflects the dual mandate of the Fed, where not only inflation but also job stability is gaining prominence in policy considerations.
Businessinsider
Economy and Markets: Fed's Shift from Inflation to Labor Market Concerns

Economy and Markets: Fed's Shift to Labor Market

The Federal Reserve has finally delivered its first interest-rate cut in four years — and a jumbo-sized one at that. It's largely being viewed as an important step towards combating a potential economic slowdown. The 50-basis-point cut wasn't altogether surprising — probabilities heading into the decision basically amounted to a coin flip. What caused some to take note was the perceived reason for the depth of the cuts.

Labor Market Concerns Emerge

While inflation has long been seen as the Fed's sole mandate, it's also starting to show signs of concern for the job market. Jason Pride, chief of investment strategy and research at Glenmede, pointed to the details of a Fed release that accompanied the rate decision, highlighting this notable shift.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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