Goldman Sachs Chief Economist Jan Hatzius stated on August 7 that the Federal Reserve might prioritize inflation data over employment data in future policy decisions. He believes that June's inflation slowdown is more likely the beginning of a broader trend and expects inflation to cool further from current levels. Hatzius pointed out that despite July's non-farm payroll data being much lower than expected and the drop in the unemployment rate being due to a significant decline in labor force participation rather than strong actual employment, the Federal Reserve's primary focus will remain on inflation. Goldman Sachs believes that inflation is currently a more critical variable in determining the future direction of interest rates than labor market conditions.