Add one more to the number of Federal Reserve officials signaling fresh discomfort over inflation.Fed Governor Michael Barr on Thursday said the US central bank needs to proceed with caution in considering additional interest-rate cuts.

Concerns about financial market stability, including the potential for a sharp drop in asset prices, are emerging as a fresh theme for Federal Reserve officials as they debate when and even whether to cut interest rates further.

Labour market data for September, delayed due to the US government shutdown, suggests the economy regained momentum after large losses over the summer. The move up in the unemployment rate was unexpected, and the monthly payrolls change in August was revised to a 4,000 decline from a previous gain of 22,000.

Nvidia’s earnings report crushed analysts’ forecasts and tamped down on the market’s fears of an AI bubble bursting.

The dollar was on track for its best week in over a month on Friday as investors wagered the Federal Reserve is unlikely to cut rates next month, with the case for further easing made no clearer by a confounding U.

Fed board governor Lisa Cook said on Thursday that funds’ so-called basis trades, which take advantage of tiny price discrepancies in Treasuries, risked making the $30tn market “more vulnerable to stress”, and in extreme cases could impact market functioning.

Though private-credit investments have generated high returns and low default rates, Cook said in prepared remarks at Georgetown University’s Psaros Center for Financial Markets and Policy in Washington, D.C., “we should expand the lens and inspect this funding vehicle more closely.”

The U.S. economy added more jobs than expected in September, but a rise in the unemployment rate and downward revisions to prior months still presented an ambiguous picture for Federal Reserve officials mulling whether further interest rate cuts are needed to bolster the labor market.