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

“I do believe the labor market is going to be the bigger risk to the economy going forward,” said John Leer, head of economic intelligence at Morning Consult. “While it shows signs of cooling, it remains very strong by historical standards,” he added. “It would be a historical anomaly if the Fed manages to successfully engineer a soft landing, i.e., tame inflation without triggering a recession.”