CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – CBS business analyst Jill Schlesinger reported a noticeable cooling in the job market for June during an interview on the WINA Morning News, attributing the trend to efforts by the Federal Reserve to curb inflation. Schlesinger explained that a slowdown in job market activity can help mitigate inflation, as it reduces the competitive pressure on employers to raise wages.

“The job market is definitely cooling off or turning the heat down a little bit,” Schlesinger said. She noted that while higher wages might seem beneficial, they can lead to increased consumer spending, further driving inflation. Schlesinger emphasized the importance of balancing wage growth to maintain economic stability.

Schlesinger also discussed the Federal Reserve’s future actions, highlighting an upcoming testimony by Federal Reserve Chair Jerome Powell before Congress. She indicated that the Fed is likely aiming to start lowering short-term interest rates by September. “The Federal Reserve is seeing that the economy is starting to slow down. Inflation is moving in the right direction.”

As the economy adjusts, Schlesinger advised patience and caution in financial decisions, especially concerning the housing market, where high mortgage rates and inflated prices have made home buying challenging for many.

You can listen to the full interview here: