A recent report by the Dallas Federal Reserve challenges assumptions about the labor market’s health, suggesting potential misjudgments from experts like the Federal Reserve and economists. The study warns that these professionals may be overlooking a crucial factor: the impact of immigration policies on employment trends. If their analysis proves accurate, this could lead to inaccurate projections regarding interest rate adjustments by the Fed during periods of high inflation. The report argues that current economic understanding overlooks the effects of stringent immigration measures implemented under President Trump’s administration. These measures have led to a significant decline in immigrant arrivals over the past few years, potentially impacting both labor supply and overall workforce dynamics. The analysis also highlights the role of both voluntary departures and forced deportations in shaping the employment landscape.