 It also matters what's going on in the labor market, though. You know, we've also said that if the labor market weakens unexpectedly, that could be a case for loosening policy as well. Really, we're weighing both those factors. Powell says the Fed is looking at data on inflation and keeping interest rates high for longer to tamp it down. He told the committee the Fed needs more confidence that inflation is moving toward 2 percent before cutting rates.