Fed Chair Powell Emphasizes Caution in Further Rate Cuts

Jerome Powell described the current U.S. interest-rate stance as “modestly restrictive,” suggesting that although recent inflation moderation may allow cuts, the Fed will move cautiously. He highlighted labor-market weakening and inflation persistence as risks. Recent Fed actions (a 25 bps cut to 4.00-4.25%) reflect balancing pressures between inflation control and economic slowdown.