This week provided more evidence that a softening labor market is the economy’s biggest threat

• Evidence is piling up of a weakening labor market that could dampen an otherwise sanguine U.S. economic outlook this year while also paving the way for more interest rate cuts.
• Together, the data points buttress worries from some Federal Reserve policymakers that the coast is far from clear for the labor market.
• “The soft labor market is the key threat to the economy this year,” economist Mark Zandi said. “It’s very fragile. We’re not creating any jobs.”

Source: https://www.cnbc.com/2026/02/06/a-weakening-labor-market-has-become-the-economys-biggest-threat.html