 We've said that if we saw the labor market unexpectedly weakening, that is also something that could call for a reaction. And by reaction there, Powell means a cut in interest rates. Now, the Fed doesn't want to cut interest rates too quickly and risk rekindling inflation, but it also doesn't want to wait too long and risk a bigger jump in unemployment. Right now, investors are betting that the Fed will see its way clear to making its first cut in interest rates this fall.