Powell: If the labor market weakens, there won't be a need for so many labor positions.

Reporter: Has AI reduced the labor force in the market?

Powell: There is some impact, but there haven't been large-scale layoffs. If there were large-scale layoffs, the number of unemployment claims would rise significantly, but that hasn't happened yet.

In the past, when one job was lost, new jobs would emerge.

Productivity increases will lead to more new jobs; at least AI hasn't caused large-scale layoffs.

Reporter: If the Supreme Court thinks Trump's tariffs are illegal, what will happen to interest rates?

Powell: I don't know.