The Federal Reserve held rates steady last Wednesday, but amid a weakening labor market, investors speculate the Fed may be late in implementing rate cuts. Citi Economist Veronica Clark joins Morning Brief to discuss her outlook on Federal Reserve rate cuts and the labor market.

Clark notes that labor market weakening was "evident" before Friday's data. With the latest figures confirming this trend after the Fed's decision to maintain rates, she suggests, "It does feel like this is a Fed that is going to feel they are a little bit behind the curve once they start cutting."

Clark believes a recession is possible, stating, "We might very well already be in it." She points out that employment data indicates "what you would normally see in early stages of a recession." However, regarding a potential Fed cut, she adds, "I think the issue for the Fed is they don't want to look like they're panicking."

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This post was written by Angel Smith