Powell: Fed doesn't look at any one asset price, say it's wrong; in aggregate, households are in good shape financially

*POWELL: DRAMATIC REDUCTION IN LABOR SUPPLY AFFECTING JOB MARKET Fed's Powell: Demand for workers has fallen a little more than supply, and our tool supports demand. FED’S POWELL: RATES ARE NO LONGER ACCOMMODATIVE BUT ARE MEANINGFULLY LESS TIGHT THAN BEFORE, WHICH SHOULD HELP PREVENT FURTHER WEAKENING IN THE LABOR MARKET POWELL: IT TAKES A WHILE FOR TARIFFS TO GET TO CONSUMERS POWELL: COULD GET 2 OR 3 OR 4 MORE TENTHS OF INFLATION FROM TARIFFS, BUT SHOULD BE ONE-TIME

POWELL: WE'VE MOVED 150 BASIS POINTS, NOW IN RANGE WHERE MANY ESTIMATES OF NEUTRAL RATE LIVE POWELL: SOME PEOPLE ON COMMITTEE FEEL IT'S TIME TO TAKE A STEP BACK FED’S POWELL: SOME MEMBERS OF THE COMMITTEE BELIEVE IT’S TIME TO TAKE A STEP BACK; NOTES LABOR MARKET IS A MORE RELIABLE INDICATOR THAN SPENDING, WHICH IS CURRENTLY SHOWING A MORE DOWNBEAT SIGNAL *POWELL: GROWING CHORUS FEELS LIKE MAYBE FED SHOULD WAIT A CYCLE FED’S POWELL: YOU SAW THAT SENTIMENT IN SEPTEMBER AND IN RECENT REMARKS, AND CAN EXPECT IT TO BE REFLECTED IN THE MINUTES FROM TODAY’S MEETING

FED’S POWELL: ABSOLUTELY COMMITTED TO BRINGING INFLATION BACK TO 2%; SAYS THE FED’S COMMITMENT IS CREDIBLE AND FIRM POWELL: DON'T THINK WE'LL HAVE A VERY GRANULAR UNDERSTANDING OF ECONOMY WHILE SHUTDOWN IS ON Fed's Powell: Could imagine shutdown could affect December meeting. FED’S POWELL: ACKNOWLEDGES POSSIBILITY OF NEEDING MORE CAUTION IN THE ABSENCE OF DATA, THOUGH NOT COMMITTING TO SLOWING DOWN — SAYS SUCH A SCENARIO IS IMAGINABLE POWELL: MUCH OF THE TIME THE LAYOFFS ARE ABOUT AI; YES IT COULD HAVE IMPLICATIONS FOR JOB CREATION

Fed's Powell: Seeing some softening, the economy is growing about 1.6% this year, slower than last year. FED’S POWELL: SOME MAY ARGUE CONDITIONS HAVEN’T CHANGED, THOUGH IT’S UNCLEAR IF THAT WILL BE THE CASE; HOPES FOR A BETTER FLOW OF ECONOMIC DATA BY THE DECEMBER MEETING Fed's Powell: If not getting info, and the economy looks unchanged, there will be an argument to slow down on cuts. Fed's Powell: We do not see weakness in the job market accelerating, then again, we didn't get the September payroll report. FED’S POWELL: A STRONGER LABOR MARKET AND STABLE PRICES ARE THE BEST COMBINATION THE FED CAN DELIVER FOR THE AMERICAN PEOPLE

*POWELL: DON'T SEE SIGNIFICANT DETERIORATION ANYWHERE IN ECONOMY FED’S POWELL: OVERALL ECONOMIC OUTLOOK REMAINS POSITIVE; NOTES IT’S CHALLENGING FOR A CENTRAL BANK WHEN POLICY GOALS ARE IN TENSION FED’S POWELL: BELIEVES THE FED HAS TAKEN THE RIGHT STEPS SO FAR; WARNS IT WOULD BE INAPPROPRIATE TO DISMISS THE INFLATION CHALLENGE *POWELL: FED IS WATCHING CREDIT CONDITIONS VERY CAREFULLY *POWELL: DON'T SEE A BROADER CREDIT ISSUE AT THIS POINT *Fed's Powell Acknowledges Rising Defaults in Subprime Credit