Powell: Fed may make more rate cuts, policy will gradually shift to more neutral levels

Federal Reserve Chairman Jerome Powell said that interest rates are still expected to fall further, but he hinted that they may not be lowered as much in the coming months. Powell said the Fed may make more rate cuts because economic trends and dynamics are expected to remain unchanged, at least in the short term. This includes a slowing job market and cooling inflation, while interest rates remain in a restrictive bit and rates held at current high levels could push up unemployment. Powell said, ‘Over time, we will shift policy to more neutral levels.’