Inflation has dropped from over 9% in 2022 to 2.5%, just above the Federal Reserve’s 2% target
The Federal Reserve is awaiting Friday’s jobs report, a crucial piece of information that will help it decide if and when it should cut interest rates.
The Labor Department is expected to report job gains for the 43rd consecutive month, with a slower growth rate balancing job openings and job seekers. Notably, the economy remains stable despite stagnant wages and rising living costs.
Inflation has dropped from over 9% in 2022 to 2.5%, just above the Federal Reserve’s 2% target. Unemployment surpassed 4% in June for the first time since 2021, indicating a cooling job market.
If the report shows the labor market softening without collapsing, the Fed may cut rates in September.