Federal Reserve officials said Wednesday that while there are signs the economy is slowing, the Fed was not yet ready to cut its key interest rate. Yet even as it held rates at their current level of about 5.5%, the Federal Open Market Committee’s latest statement included changes in language that acknowledged growing signs of economic weakness that suggest a greater willingness to consider lowering borrowing costs. Notably, the FOMC observed some deterioration in labor-market conditions. “Job gains have moderated, and the unemployment rate has moved up but remains low,” it said in the statement Wednesday. At 4.1%, the unemployment rate is at its highest level since February 2018, though still below levels that would suggest a recession. On Tuesday, the Bureau of Labor Statistics reported that while layoff activity remained subdued in June, the hiring rate in the economy has slowed to a level not seen since 2014. The…
