Powell: The Fed Can Remain Cautious as It Seeks a Neutral Interest Rate

Powell stated that over time, the Federal Reserve will gradually move toward a more neutral interest rate. Despite downside risks being lower than expected, the Fed can remain cautious in its pursuit of a neutral rate. U.S. inflation has not yet reached the target but is making progress, and the unemployment rate remains very low. The rate cut in September was a strong signal of support for the labor market.