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Fed Might Focus on Weakening Labor Market Rather Than Inflation as It Mulls Rate Cuts: Economists

Thursday’s CPI report showed that prices declined on a monthly basis for the first time since March 2020, spurring hope that the Fed will finally cut rates.

A weakening labor market could persuade the Fed to cut rates even as inflation is not yet back to the Fed's 2% goal. (Anchalee Phanmaha/Getty Images)
A weakening labor market could persuade the Fed to cut rates even as inflation is not yet back to the Fed's 2% goal. (Anchalee Phanmaha/Getty Images)