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The recent lackluster July hiring report has shifted the focus of economic policymakers in Washington from inflation to the labor market. The Federal Reserve has been working to ensure a soft landing for inflation, but now they are concerned about whether the economy is settling at full employment or if it is heading towards a downturn. A broader economic slowdown could impact the presidential race between former President Donald Trump and Vice President Kamala Harris. The Fed is considering a rate cut next month to shore up the slowing economy, but some economists believe they need to act faster to prevent a downturn. The current labor market is not weak, with more job openings than unemployed workers and subdued layoffs. [Extracted from the article]