Marketplace All-in-One When will the Fed shift focus to the job market?
Mar 18, 2026
Claire Brown, a New York Times reporter on insurance and climate risk, and Mitchell Hartman, a business and labor reporter, dig into the Fed’s balancing act between inflation and a sluggish job market. They discuss Powell’s rate stance, rising long-term unemployment, and pressures from oil shocks. Other highlights include dramatic vegetable price spikes and how credit history affects homeowners’ costs.
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Fed Will Tackle Inflation Before Labor Support
- The Fed must prioritize price stability before boosting the labor market as energy and tariff-driven inflation risks are currently upside.
- Joe Brusuelas and Jerome Powell argue controlling inflation gives employers confidence and resources to hire, even if jobs are stagnant.
U.S. Job Market Has Clearly Slowed
- Job growth has slowed dramatically: 156,000 jobs added in the last 12 months versus over a million the prior year.
- Slower labor supply from immigration cuts and retirements partly explains weaker hiring, per Christine Cooper.
Wage Growth Trails Inflation For New Hires
- Wage growth for new hires is cooling, with posted wages up only 2.1% year-over-year while consumer prices rose 2.4%.
- That implies real wage declines for many jobseekers and pressure on household finances.