Federal Reserve (Fed) Chairman Jerome Powell is cautious in deciding to cut interest rates amid policy uncertainty. According to Powell, the Fed will gradually and carefully cut interest rates in the coming months due to ongoing inflation pressures.
Powell stated that even though inflation is nearing the 2% target desired by the Fed, that figure has not yet been achieved. On the other hand, the US economy currently remains strong, so Fed policymakers feel there is no need to rush to cut interest rates.
Economists estimate that the Fed will announce a 0.25% rate cut in December, following a 0.25% cut last week and a 0.5% cut in September. However, the Fed's next steps remain unclear.
