Why the Fed is watching the unemployment rate.

Labor Market & Monetary Policy - The Federal Reserve (Fed) closely monitors the unemployment rate as a key statistic influencing monetary policy [1] - An unexpected rise in the unemployment rate, potentially to 4-6% or 4-7%, could prompt the Fed to consider a rate cut due to its dual mandate [1] - Unlike other central banks, the Fed's dual mandate makes it particularly sensitive to changes in the unemployment rate [1] Economic Impact of Tariffs & AI - The full impact of tariffs is yet to be realized, with final outlines of deals and sectoral tariffs still unfolding [2] - Companies are increasingly deploying AI, leading to CEOs reporting the ability to limit or reduce hiring [2]