Federal Reserve Chair Jerome Powell’s recent remarks suggest a cautious approach toward interest rate cuts. He emphasized that while inflation has eased from its peak, it remains above the Fed’s 2% target. Powell signaled that the Fed needs greater confidence that inflation is sustainably moving lower before reducing rates. The labor market remains strong, giving the Fed room to stay patient. Markets reacted with mixed signals, as investors had hoped for earlier rate cuts. Powell’s tone was measured, indicating that the Fed will continue to monitor data closely and remain data-dependent. Overall, his comments reinforced a message of prudence, suggesting that rate cuts are possible this year, but only if inflation continues its downward trend without jeopardizing economic stability.