Fed's Powell: If we see data labor market is stabilizing, or strengthening, it would play into policy decisions

*POWELL: DRAMATIC REDUCTION IN LABOR SUPPLY AFFECTING JOB MARKET Fed's Powell: Demand for workers has fallen a little more than supply, and our tool supports demand. FED’S POWELL: RATES ARE NO LONGER ACCOMMODATIVE BUT ARE MEANINGFULLY LESS TIGHT THAN BEFORE, WHICH SHOULD HELP PREVENT FURTHER WEAKENING IN THE LABOR MARKET POWELL: IT TAKES A WHILE FOR TARIFFS TO GET TO CONSUMERS POWELL: COULD GET 2 OR 3 OR 4 MORE TENTHS OF INFLATION FROM TARIFFS, BUT SHOULD BE ONE-TIME

Fed's Powell: Seeing some softening, the economy is growing about 1.6% this year, slower than last year. FED’S POWELL: SOME MAY ARGUE CONDITIONS HAVEN’T CHANGED, THOUGH IT’S UNCLEAR IF THAT WILL BE THE CASE; HOPES FOR A BETTER FLOW OF ECONOMIC DATA BY THE DECEMBER MEETING Fed's Powell: If not getting info, and the economy looks unchanged, there will be an argument to slow down on cuts. Fed's Powell: We do not see weakness in the job market accelerating, then again, we didn't get the September payroll report. FED’S POWELL: A STRONGER LABOR MARKET AND STABLE PRICES ARE THE BEST COMBINATION THE FED CAN DELIVER FOR THE AMERICAN PEOPLE

FED’S POWELL: DOESN’T PLACE MUCH WEIGHT ON NON-MARKET SERVICES DATA; NOTES INFLATION EXCLUDING TARIFF EFFECTS IS NOT FAR FROM THE 2% TARGET FED’S POWELL: ESTIMATES INFLATION MAY BE ABOUT 0.5 TO 0.6 PERCENTAGE POINTS ABOVE TARGET; DOES NOT SEE LABOR MARKET OR INFLATION EXPECTATIONS TIGHTENING IN A WAY THAT WOULD MAKE INFLATION MORE PERSISTENT FED’S POWELL: NOT ASSUMING TARIFF-DRIVEN INFLATION WILL BE ONE-TIME; SAYS FED IS MONITORING DEVELOPMENTS CLOSELY FED’S POWELL: POLICY STANCE IS MODESTLY RESTRICTIVE, WHICH IS CONTRIBUTING TO THE LABOR MARKET’S GRADUAL COOLING POWELL: DATA CENTER INVESTMENTS AND AI IS A BIG DEAL