An interest rate cut by the Federal Reserve can have several implications for the broader US economy, including the labor market. In his speech at the Jackson Hole Economic Symposium Friday morning, Federal Reserve Chair Jerome Powell stated that the "time has come" to initiate rate cuts.

As the economy may have to adjust to rate cuts after being held at elevated levels for so long, can the labor market adapt just as quickly?

Philadelphia Fed President Patrick Harker sits down with Jennifer Schonberger to discuss the impacts rate cuts will have on the labor market and the greater impacts of a recession.

"I hate to keep using the word unprecedented rate, but it's true. Where we are right now, we can look at history as some guide, but it is not the guide," Harker explains. "Think about what we went through — we've done a lot of catch-up in the labor market."

Watch Federal Reserve Chair Jerome Powell's full speech here.

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This post was written by Nicholas Jacobino