Research shows that the US job market may be approaching a critical point, and the Federal Reserve's interest rate cuts are too late

According to a recent study released at the Jackson Hole annual meeting, the US economy may now be approaching a critical point where a sustained decline in job vacancies will lead to a faster rise in unemployment, supporting the argument that the Federal Reserve is starting to cut interest rates to protect the labor market. Pierpaolo Benigno, an economist at the University of Bern, and Gauti B. Eggertsson, an economist at Brown University, pointed out in their research paper that Federal Reserve policy makers face two risks: slow interest rate cuts leading to a "hard landing" with high unemployment rates; Premature interest rate cuts make the economy vulnerable to rising inflation. According to their new analysis of the job market, "Our current assessment indicates that the risk of the former exceeds that of the latter