 annual inflation has been inching closer to the Fed's target of 2%. And then there's the labor market. Stephen Friedman with McKay Shields says it's finally starting to soften a bit. I would describe it as strong, but not tight. And that's a subtle difference. But what it means is that the labor market is no longer a source of meaningful inflationary pressure. And when you zoom way out to the entire economy, there are signs that it's cooling down, says Lauren Seidel Baker with ITR Economics.