The Fed may shift towards lowering interest rates as slowing employment becomes a key signal.

[Chain News] PANews, August 1st - According to reports, "Fed mouthpiece" Nick Timiraos stated that the slowdown in employment over the past three months may have opened the door for Fed officials to consider interest rate cuts at their next meeting in September. At the very least, this highlights the difficult balance they face amid an economic slowdown and rising inflationary pressures. With the labor market previously showing robust job growth, Fed officials felt reassured about keeping interest rates unchanged this year. However, the significant downward revisions to the employment data in May and June have changed that situation. Fed officials had previously indicated that they had reduced their focus on overall job growth, as it has declined alongside the slowing growth in the labor force. When the labor supply decreases, the unemployment rate may remain stable or even decline, even if job growth slows. However, Fed Chair Powell pointed out this week that the stability of the unemployment rate may mask underlying weakness—this balance is inherently fragile when a reduction in job seekers coincides with a decline in job vacancies. He mentioned the "downside risks" of the labor market six times during the press conference, suggesting that actual weakness may provide justification for policy easing.