In the Federal Reserve's battle between fighting inflation and limiting unemployment, the latter side carried the day Wednesday and could also have an edge heading into 2026 if labor market weakness becomes more evident through an apparent overcounting of jobs numbers.

In the immediate term, worries over the employment situation meant a vote, albeit divided by a 9-3 margin, to lower the central bank's key interest rate by a quarter percentage point. Down the road, there are indications that policymakers will be more inclined to cut further if the labor market stays soft.

At his Wednesday news conference, Chair Jerome Powell mentioned several times that there likely has been negative job growth in recent months, a condition that would argue for easier monetary policy.

"Gradual coolin

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