Powell hinted that the Fed is shifting its policy focus from inflation to employment.

On September 18, Fed Chairman Powell emphasized that, given signs showing that the labor market is "truly cooling," the Fed is inclined to achieve "maximum employment" in its dual mandate after focusing more on Inflation in the long term. He stated that since April, the persistent high inflation risks have diminished, partly due to a slowdown in job growth. The Fed's basic assumption is that the impact of tariffs on Inflation may be temporary. He noted that, on the other hand, the downside risks in the labor market have increased, with new job creation seemingly below the so-called "breakeven rate" needed to maintain the unemployment rate. ( Jin10 )