Karen Manner, fixed-income strategist and portfolio manager at Hermes Investment Management, said in a report that US inflation remains the Federal Reserve's primary policy concern and Fed officials have been notably consistent on this point. Policymakers now generally view the US labor market as less a source of inflationary pressure and closer to balance, shifting the policy focus from labor-market risks to inflation as the main variable.

2026-08-20

Karen Manner, fixed-income strategist and portfolio manager at Hermes Investment Management, said in a report that US inflation remains the Federal Reserve's primary policy concern and Fed officials have been notably consistent on this point. Policymakers now generally view the US labor market as less a source of inflationary pressure and closer to balance, shifting the policy focus from labor-market risks to inflation as the main variable.