The latest employment report revealed an increase in unemployment and a slowdown in wage growth in June, signaling a continuation of a moderating labor market. This development may prompt Federal Reserve officials to remain cautious as they monitor potential signs of strain in the job market. The Federal Reserve aims to maintain both low, stable inflation and a robust labor market by adjusting interest rates. In response to heightened inflation in early 2022, the Fed raised rates to curb price increases, prioritizing inflation control over employment concerns. However, with inflation now easing, the focus has shifted back to ensuring a strong job market. The rising unemployment rate, reaching 4.1% in June compared to 3.6% a year earlier, suggests that finding employment has become more challenging. This shift underscores the importance of maintaining a healthy job market, prompting concerns among central bankers.