The American economy is facing a new threat—unemployment, becoming a credible concern alongside inflation. Economists are urging the Federal Reserve to ease its inflation-fighting efforts before high interest rates push the economy into a recession. The labor market, while not collapsing, is showing signs of strain, with the unemployment rate gradually increasing for three consecutive months. Hiring has slowed in key sectors like leisure and hospitality, and indicators suggest that labor market conditions have significantly cooled. The fear now is that the Fed is employing inflation-fighting measures in an economy that no longer requires them, potentially leading to job losses.
