Fed Chair Powell Highlights Stronger U.S. Economy, Suggests Cautious Approach to Rate Cuts

According to Odaily, Federal Reserve Chair Jerome Powell stated on Wednesday that the U.S. economy is performing more robustly than it was last September when the Fed began cutting interest rates. This stronger economic performance may lead policymakers to adopt a more cautious approach to further rate cuts. Powell emphasized, "We can afford to be more cautious as we try to find a neutral stance." Powell's remarks on Wednesday align with the views of more cautious policymakers and largely echo previous sentiments that the Federal Reserve can "carefully" consider rate cuts without rushing into action. His comments did not significantly alter the current expectations for another 25 basis point rate cut in December.