U.S. on the cusp of full employment

Why it matters: It came as the Fed is pulling back on the policies that underpinned the pandemic-era economic and financial market boom as it wages a war to beat back the hottest inflation in almost four decades.

What's new: The Fed will speed up the withdrawal of a form of economic aid and signaled that the era of ultra-low borrowing costs will end earlier (possibly as soon as springtime), as Axios' Kate Marino reports.

The intrigue: The labor market looks much different than the last time it notched full employment before the pandemic by a number of measures — namely, as the virus rages, there are over 2 million fewer workers in the job market compared to pre-pandemic times. It’s fueled the worker shortage and held down the recovery.

• "We're not going back to the same economy that we had in February 2020," Powell said, noting those workers could be slow to return.

What to watch: Fed officials predict by next year the unemployment rate will match the 50-year low reached before the pandemic.