 While a softening labor market is a sign of a slowing economy, the Fed will likely view this recent report positively in the sense that, on the margin, a less strong job market weakens demand some, which can be a precursor to cooler inflation. The Fed has, in fact, maintained its very tight monetary policy to do just that, weaken demand and cool inflation. We'll learn more in the next few days from Fed Chair Jerome Powell's congressional testimony, as well as inflation reports later in the week.