Federal Reserve Chair Jay Powell is closely monitoring a cooling job market, indicating a potential interest rate cut. Powell emphasized the importance of both stable prices and maximum employment, suggesting a shift in focus to the labor market. With rates at their highest in 23 years, the Fed aims to combat inflation but now faces risks from a slowing labor market. Powell's acknowledgment of these risks hints at a looming rate cut, possibly in September. However, he remains cautious, awaiting more data on cooling inflation. Despite political pressure, Powell maintains the Fed's independence and commitment to its mandate. The article underscores the Fed's evolving economic priorities and the impact on upcoming monetary policy decisions. Stay informed with Yahoo Finance for expert analysis and updates on market trends and news.