Powell indicates further, smaller rate cuts, insists the Fed is ‘not on any preset course’

Federal Reserve Chair Jerome Powell emphasized that the recent interest rate cut does not necessarily mean future cuts will be as aggressive. Powell mentioned that future rate adjustments will be smaller and based on economic data. He indicated that if the economy performs as expected, there may be two more rate cuts this year in quarter percentage point increments. Powell expressed confidence in the economy’s strength and believes inflation will continue to cool. He also noted that the Fed’s decision to cut rates reflects a recalibration of policy to better suit current conditions, focusing on maintaining a strong labor market and achieving sustainable inflation.