These are two pretty pivotal threads of dialogue. On face value, Powell’s comment that the jobs market had worsened shouldn’t necessarily be a newsflash. Last month’s payrolls report was a huge disappointment, with the three-month moving average of job creation falling to its lowest level since the pandemic.

Both Wall Street and the White House will be paying close attention to Fed Chair Jerome Powell’s high-profile speech Friday at the Fed’s annual economic symposium in Jackson Hole, Wyoming.