Powell: The labor market has shown significant downside risks, and acting too slowly could put pressure on the labor market.

On October 15, Federal Reserve Chairman Powell stated that the slow transmission risks of tariffs are beginning to manifest as persistent inflation. The labor market has shown significant downside risks. As risks tend to balance, policies need to shift towards a more neutral stance. If the Federal Reserve acts too quickly, it may jeopardize the anti-inflation mission. Data since the July meeting indicates that the labor market has noticeably softened. Conversely, acting too slowly may put pressure on the labor market. The Federal Reserve will not attempt to lock in a balanced level of employment; the standard error itself could be 50,000. ( Jin10 )

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