With Fed's shift to job market risks done, policy now has to catch up

In 2022, the Federal Reserve focused on combating inflation by rapidly raising interest rates. Two years later, the focus has shifted to protecting the job market, with potential rate cuts on the horizon. Fed Chair Jerome Powell's recent speech at the Jackson Hole conference highlighted the need to address job market risks. The economy is at a critical juncture as officials debate the pace and extent of rate cuts to maintain full employment.