Many Fed members see ‘gradual softening’ of labor conditions

Minutes from the last Federal Reserve meeting read, “Several participants noted that immigration policies were reducing labor supply. In their outlook for the labor market, most participants suggested that higher tariffs or heightened policy uncertainty would weigh on labor demand, and many participants expected a gradual softening of conditions. A few participants noted that some indicators already provided signs of softness and that they would be attentive to indications of further labor market weakening. Some participants observed that wage growth had continued to moderate and that it was not expected to contribute to inflationary pressures.”