Recent data indicates the labor market is cooling, but it's been gradual through slower hiring rather than outright job cuts.

"Fed officials will view today's report as showing some cooling in consumer spending, which points to less inflationary pressure. Our view of the U.S. economy is not as optimistic."

"There are very powerful tools out there that the government is using, and they're clearly going to get better and better."

"The odds of us raising rates are quite low, but I don't want to take anything off the table."