Speaking at the NABE meeting in Philadelphia, Fed Chair Jerome Powell acknowledged that economic activity is slightly stronger than expected but warned of rising risks to employment. "While the unemployment rate remained low through August, payroll gains have slowed sharply, likely in part due to a decline in labor force growth due to lower immigration and labor force participation. In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen," The Chair also indicated that the Federal Reserve could conclude its balance-sheet runoff in the coming months, noting that liquidity conditions are gradually tightening. He cautioned that delaying action risks amplifying the impact of tariffs and potential job losses, while the recent lack of key data has added uncertainty to the policy outlook.