Some economists think the Fed has increased rates enough and needs to slow down or even reverse rate increases. But inflation remains high and the labor market is still very tight. The figure below is the quits and jobs opening rate from JOLTS. It shows that openings and quits have fallen in the last few months. But they are still much higher than they were pre-pandemic, or any point before then. The economy may be slowing, but there is still considerable wage pressure adding to inflation. This suggests the Fed still has some work to do.

Source: FRED

Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.