In the labor market, there has been a marked slowing in both the supply of and demand for workers—an unusual and challenging development. The unemployment rate edged up to 4.3 percent in August but has remained relatively stable at a low level over the past year. The recent pace of job creation appears to be running below the "breakeven" rate needed to hold the unemployment rate constant. But uncertainty around the path of inflation remains high. If we ease too aggressively, we could leave the inflation job unfinished and need to reverse course later to fully restore 2 percent inflation.