The Fed's rate decision shows its focus has shifted from inflation to the labor market

• The Federal Reserve cut rates by 50 basis points on Wednesday.
• Some experts viewed this as primarily a response to deteriorating labor conditions.

The Federal Reserve has finally delivered its first interest-rate cut in four years — and a jumbo-sized one at that. It's largely being viewed as an important step towards combating a potential economic slowdown.

The 50-basis-point cut wasn't altogether surprising — probabilities heading into the decision basically amounted to a coin flip. What caused some to take note was the perceived reason for the depth of the cuts. While inflation has long been seen as the Fed's sole mandate, it's also starting to show signs of concern for the job market.

Jason Pride, chief of investment strategy and research at Glenmede, pointed to the details of a Fed release that accompanied the rate decision.

"The key message from the Summary of Economic Projections is that the Fed is more worried about the labor market and less concerned about inflation at this point," said Jason Pride, Chief of Investment Strategy & Research at Glenmede.

"Though the Fed won't publicly acknowledge it, its dual mandate is turning into a singular one as the job market has softened," added Ryan Sweet of Oxford Economics. "The Fed is likely worried that labor demand would weaken more, causing additional stress points in the labor market.

Still, in Fed Chair Jerome Powell's view, the current unemployment remains healthy at 4.2%, but the chairman acknowledged weakness, such as in dropping payrolls. The goal now, he said, was to keep the jobs market strong — the Fed would shape future rate cuts based on any further deterioration.