At the last Federal Reserve meeting, three Fed members, including Lori Logan, voted in favor of raising rates, citing a labor market they believed was solid and continuing to strengthen.

Really?

From where I sit, the data tells a different story. The labor market has been gradually losing momentum, and today’s ADP employment report is yet another piece of evidence pointing in that direction. Hiring has slowed, businesses are becoming more cautious, and the cracks are becoming more visible with each new report.

I struggle to understand the case for higher rates in this environment. Raising the federal funds rate increases borrowing costs across the economy, making it more expensive to finance a home, a vehicle, or a business. While the Fed’s mandate is to promote price stability and maximum employment—not to set mortgage rates directly—higher policy rates can add financial pressure for consumers and businesses when economic growth is already slowing.

In my opinion, the conversation should be shifting away from additional rate hikes and toward when the Fed can begin providing some relief. Inflation has made meaningful progress from its peak, and the labor market no longer appears to be as resilient as it was a year ago. If upcoming employment and inflation data continue to soften, I believe the argument for keeping rates elevated becomes increasingly difficult to justify.

For millions of Americans, lower borrowing costs wouldn’t just help the housing market—they would ease pressure on household budgets, improve affordability, and support broader economic growth. That’s a conversation worth having.

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