#PowellSpeechToday clear signal
hat was said
Powell emphasized that the Fed is proceeding cautiously with rate cuts.
He noted that the recent rate cut (25 basis points) was motivated by increasing risks to the labor market.
He characterized the current policy stance as “modestly restrictive.” That is, while borrowing costs are lower than before, they’re still high enough to put some drag on economic activity.
Powell made clear that future cuts are not guaranteed and will depend heavily on upcoming data (inflation, labor market, growth).
He warned that if the Fed cuts rates too aggressively, it could risk “leaving the inflation job unfinished” and possibly having to reverse course.
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Key takeaways / implications
The Fed is balancing two risks: inflation staying too high vs. unemployment rising or the labor market weakening.
Policy is now less about showing resolve and more about reacting to the economic outlook. There’s no fixed path.
Markets may have been hoping for more aggressive cuts or clearer guidance; Powell’s tone suggests more caution. This could shape expectations for rate changes in coming meetings
