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

Economic Outlook - The report suggests a potential slowdown in third-quarter growth due to a miss on the retail side, leading to lower consumer spending expectations for the fourth quarter [2] - The market anticipates the Fed to cut rates due to concerns about economic weakness, outweighing inflation concerns [3] - Consumer confidence data indicates increasing concern about the job market, with more people reporting difficulty finding jobs [5][6] - A survey indicates that 57% of respondents anticipate a weaker economy in 2026, potentially impacting holiday spending [7] - Consumers are expected to reduce spending and prioritize needs over wants during the holiday season, potentially leading to a softer season compared to the previous year [8][9] Federal Reserve (The Fed) - The market speculates that the White House may be considering Kevin Hasset as a potential Fed chair, which could influence interest rate policy [10][11][12][13][14] - The president may prefer a Fed chair who is more inclined to lower interest rates [14] - The bond market's reaction to the potential Fed chair appointment is muted, while the dollar's reaction suggests anticipation of a more dovish Fed [14][15]