Federal Reserve Governor Philip Jefferson stated that after gradually cooling for most of the past year, the labor market may be showing signs of stabilization. Speaking at a university in Detroit on Tuesday evening, Jefferson noted that shifts in employment data suggest the job market may no be weakening continuously as it was in 2025. He pointed out that the number of job openings has not declined in recent months, and the ratio of job openings to unemployed workers has become more stable. According to his prepared remarks, Jefferson said, "When this ratio levels off, it indicates that labor supply and demand may be moving towards balance." He added, "This change could mean we are progressing towards a more stable employment market." There remains a possibility that the labor market could weaken further. Jefferson indicated that the Fed must balance this risk against the potential for higher inflation resulting from the Iran conflict. Considering this balance, Jefferson said, "I believe our current policy stance is well-positioned to handle a range of possible outcomes." After cutting interest rates by nearly 2 percentage points cumulatively in 2024 and 2025, the Fed has maintained the target interest rate at 3.5%-3.75% so far this year. Based on futures market bets, Wall Street traders are confident that the Fed will once again hold rates steady at its next policy meeting later this month.