Fed’s Hammack Sees Balanced Labor Market as Supply and Demand Both Ease

Federal Reserve economist Lisa Hammack said the U.S. labor market may remain broadly balanced even as economic growth slows, because both demand for and supply of workers are falling. Speaking on 21 Aug 2025, Hammack noted that labor supply has "come down dramatically," matching indications that employer demand is easing. She described the unemployment rate as "one of the best indicators we have" and said policymakers will interpret upcoming employment figures within the context of wider economic shifts rather than in isolation.