The Federal Reserve is adjusting its monetary policy in response to a softening labor market, prompting JPMorgan to anticipate steeper rate cuts. Recent labor data indicates rising unemployment and slowing job gains, leading to discussions of a possible 50 basis point cut in September. Concerns are growing that the Fed may have delayed necessary rate reductions, as the latest jobs report reveals significant declines in job growth. Fed Chair Jerome Powell emphasized the importance of closely monitoring the labor market, which is seen as crucial for informing policy decisions aimed at stabilizing the economy amid declining job openings and quits.