Powell says: "Labor market conditions have cooled considerably compared to where they were two years ago," and the labor market appears to be fully back in balance. He adds that this is no longer an overheated economy.

Powell states that easing too soon, too much, could harm inflation progress. Easing too little, too late could unduly weaken the economy.

Powell said that "in light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face.” He adds that “reducing policy restraint too late or too little could unduly weaken economic activity and employment.”