Odaily News Nick Timiraos, the "Federal Reserve Mouthpiece", pointed out in his article that Fed Chairman Powell said at a hearing on Tuesday that the trade-off between reducing inflation and maintaining a solid labor market is changing, a cautious but important shift that brings the Fed one step closer to cutting interest rates. "Rising inflation is not the only risk we face," Powell said. "We have seen a clear cooling of the labor market in many ways. This is not the source of widespread inflationary pressures in the economy right now." This assessment is noteworthy because Fed officials have long believed that an overheated labor market is the main risk to the process of keeping inflation down. Powell admitted that he would not have made such a judgment just two months ago. In fact, Powell's comments at a meeting in Portugal last week, before the U.S. Department of Labor released its June employment report, were also more cautious.