The Federal Reserve is navigating a challenging period as it seeks to balance inflation control with labor market stability. Following a recent 25 basis point rate cut, Fed Chair Jerome Powell and Cleveland Fed President Beth Hammack have highlighted the dual risks facing the economy. Inflation remains a concern with risks skewed to the upside, while employment faces downside risks. Hammack emphasized the Fed's commitment to maintaining a restrictive policy stance to achieve its 2% inflation target, which is not expected to be reached until late 2027 or early 2028. The Fed's dual mandate continues to pose significant challenges as it works to stabilize both inflation and employment.