AI Data Insight
In the latest Q2 2026 Chicago Fed National Activity Index (CFNAI), the employment subindex dropped to -0.04, deteriorating further from the previous value of -0.02. This aligns with the broader economic index's trend of turning from positive to negative, indicating a cooling US labor market. Analysts note that the lagging effects of high interest rates are gradually materializing, requiring close observation going forward on whether this triggers the risk of an economic hard landing.