Federal Reserve Chair Jerome Powell highlighted significant downside risks in the labor market, citing persistent inflation due to slow tariff transmission. Speaking on October 15, 2025, Powell noted that data since the July meeting shows a clear softening in employment conditions. He warned that delayed action by the Fed could exacerbate pressures on the labor market, emphasizing that the Fed will not aim to maintain a balanced employment level, acknowledging a potential standard error of 50,000 jobs.