What a higher interest rate environment means for the job market, inflation

With inflation beginning to cool but many economic headwinds on the horizon, many on Wall Street are still debating as to when the Federal Reserve will begin to cut rates. Recent comments from Fed leadership continue to throw doubt on the Fed’s next moves.
Vanguard Chief Economist & Global Head of Portfolio Construction Roger Aliaga-Díaz joins Yahoo Finance to discuss what are the conditions that need to be met for the Fed to make interest rate cuts and the possibility of where the economy might land.
Aliaga-Diaz claims the Fed needs “to see inflation in a sustained path downwards. This is difficult to think it will continue without further softening of the labor market. So it’s the combination of inflation coming down with unemployment increasing which will actually trigger the cuts by the Fed.”
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