November 2024 FOMC Reaction: A Careful Approach

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The Federal Reserve’s decision to cut the Federal Funds Rates by a quarter-point reflects a continued shift in focus toward labor market stability even as inflation remains top of mind and somewhat higher than desired. The labor market is generally in good shape, and — critically — “not a source of significant inflationary pressure,” according to Fed Chair Jerome Powell. But recent government data shows that job openings have continued to decline and are approaching concerning territory where further slides could translate into increasing unemployment. Unemployment is low and layoffs are subdued, but hiring remains sluggish overall. This cut is

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