Fed will absolutely be focused on employment over inflation, says Conference Board's Dana Peterson

Economic Outlook - The recent economic data presents a mixed picture, leading to reduced expectations for third quarter growth and lower consumer spending forecasts for the fourth quarter [2][3] - The Federal Reserve is likely to consider cutting interest rates due to concerns about economic weakness rather than inflation [3][10] Labor Market and Consumer Confidence - The weakening job market is perceived as a more significant threat compared to inflation, as indicated by consumer confidence data [4][5] - A rise in the unemployment rate is noted, particularly affecting sectors like finance and tech, despite minimal layoffs [6] Holiday Spending Trends - A survey indicates that 57% of consumers expect the economy to weaken in 2026, which may lead to reduced holiday spending this season [7][9] - Consumers are prioritizing essential gifts and services over discretionary spending, suggesting a softer holiday season compared to the previous year [9] Federal Reserve Leadership Speculation - There is speculation regarding the potential nomination of Kevin Hasset as the new Fed chair, which could influence economic confidence and interest rate policies [10][12] - The market's reaction to the Hasset speculation indicates a desire for lower interest rates, aligning with the administration's goals [14]