The U.S. economy rebounded from recent hurricanes, sending the jobless rate down to a 17-year low in October​and driving up the pace of hiring.

While that’s good news, it could pose a challenge for policy makers: the risk of the economy or financial markets overheating as labor becomes more scarce, stocks march to routine record highs and stimulative tax cuts potentially kick in during the coming months.

The Federal Reserve is widely expected to raise short-term interest rates at its final meeting of the year​in December. Its prospective leader, Fed governor Jerome Powell, who was nominated Thursday by President Donald Trump​to become central bank chairman, might need to consider picking up the pace of rate increases next year to tamp down the risk of financial excesses or the threat of future inflation.

The Labor Department reported that the unemployment rate fell 0.1 percentage point to 4.1% in October, its lowest level since December 2000, the height of a technology bubble. The unemployment rate, which changed little over the course of 2016, has barreled down from 4.8% at the start of this year.

A broader measure of unemployment that includes Americans stuck in part-time jobs or too discouraged to look for work fell to 7.9% in October. The last time it was lower was in 2001.