With the Federal Reserve's dual mandate being to promote maximum employment while seeking to stabilize prices, the health of the labor market becomes a key factor in their rate cut decision-making. Recent data has pointed to a cooling in the labor market, with unemployment ticking up— fueling concerns over the real health of the labor market. However, retail sales and retail earnings seem to show that people are spending.

Yahoo Finance anchor Seana Smith breaks down the details, taking a closer look the mixed economic signals Wall Street, and the Fed, are trying to decode.

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This post was written by Angel Smith