The Fox News Rundown Business Rundown: Is the Job Market Really as Bleak as the Fed Thinks?
Sep 29, 2025
Kenny Polcari, Chief Market Strategist at Slatestone Wealth, shares insights on the job market and monetary policy. He delves into the significance of the upcoming jobs report and discusses how a lackluster result could prompt more Federal Reserve rate cuts. Kenny contrasts the strength of consumer spending with the cooling labor market, highlighting the Fed's cautious approach. He also touches on the potential impact of a government shutdown on market reactions and the importance of inflation readings for Fed comfort.
AI Snips
Chapters
Transcript
Episode notes
Fed Comfortable Near 3% Inflation
- The Fed appears comfortable with inflation around 3% rather than pushing aggressively back to 2%.
- Kenny Polcari says the economy of 2025 makes a 2% target harder and the Fed has subconsciously eased toward ~3%.
Expect Only One More Cut This Year
- Expect only limited further rate cuts because macro data like spending and wages remain robust.
- Kenny recommends at most another 25 basis point cut this year and cautions against aggressive cuts.
Fed Officials Remain Divided
- Fed officials are split between guarding against inflation and acting for labor-market weakness.
- Polcari notes multiple Fed presidents voiced caution about an aggressive cutting schedule amid mixed signals.