Fed Faces Balancing Act: Rate Cuts and Job Market Concerns

Federal Reserve officials are poised to cut interest rates next week amid increased concerns about stagflation, revealed by recent indicators showing persistent hiring weaknesses and waning inflation worries.

This shift began in summer, with dissent from two Fed governors advocating for rate cuts due to job market risks, emphasizing a cooling economy that risks job losses.

August saw the unemployment rate rise to 4.3%, while revised data showed job losses back in June, making these developments pivotal for the central bank's upcoming decision-making.

(With inputs from agencies.)