The U.S. economy is shifting focus from high inflation to concerns about the labor market. For 2½ years, the Federal Reserve and the White House prioritized combating inflation.

However, a disappointing July hiring report has redirected attention to the labor market.

Fed officials, aiming for a “soft landing” to reduce inflation without weakening the economy, are now questioning if the economy is settling at full employment or exceeding it, the Wall Street Journal has reported.

An economic slowdown could impact the presidential race between former President Donald Trump and Vice President Kamala Harris.

Written by B.C. Begley