Jobs Report Gives Fed More Runway to Cut Rates, Pimco's Wilding Says

The video discusses a mixed economic report, focusing on payrolls and aggregate hours, which indicate slowing US growth. It highlights weaker-than-expected payroll gains and a decline in aggregate hours growth. The discussion shifts to wage growth, noting a decrease in average hourly earnings and its impact on Federal Reserve policy. The report suggests that while profit growth is decelerating, companies are cutting labor costs by reducing hours rather than hiring. This situation provides the Fed with more flexibility, as inflationary pressures are not currently a concern.

What does the speaker mean by saying the report is the perfect employment report for the Fed?

In what ways are corporations responding to profit growth that is decelerating?