All eyes are on the Federal Reserve as it prepares to cut interest rates amid a cooling labor market and falling inflation.

In this episode of Stocks In Translation, Yahoo Finance’s senior reporter Alexandra Canal and Yahoo Finance producer Sydnee Fried are joined by Deutsche Bank chief US economist Matthew Luzetti as they break down rate cuts, labor report revisions, and how they all affect the US economy.

When speaking to the downward revision trends in the jobs report and the uncertainty they may cause, Luzetti says, “I think it is confirmation of a softening trend in the labor market data.” “Again, I don't think it's bad enough… to make you think that recession is the most likely outcome, but it’s certainly confirmation that... the labor market is weakening.”

In terms of identifying when “long and variable lags” of when rate cuts will take effect, “a lot of it is already becoming reflected. We've seen mortgage rates come down pretty substantially,” Luzzetti adds. “They're communicating to the market upfront. The market's pricing that in a little bit earlier and it gets reflected in the interest rates that people care about earlier.”

Find more episodes of Stocks in Translation here.

Thoughts? Questions? Fan mail? Email us at yfpodcasts@yahooinc.com.

Yahoo Finance's Stocks In Translation is hosted by Jared Blikre and produced by John Tejada and Alexander Frangeskides.

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