Fed Chair Jerome Powell said he judged the Federal Reserve’s interest-rate stance as “still modestly restrictive” even after last week’s rate cut, implying more wiggle room to reduce rates
NeutralFinancial Markets

Fed Chair Jerome Powell recently described the Federal Reserve's interest-rate stance as 'still modestly restrictive' despite last week's rate cut. This suggests that there may be further opportunities to lower rates in the future. Powell also cautioned that there is 'no risk-free path' in navigating economic policy, highlighting the complexities and potential risks involved. This matters because it indicates the Fed's careful approach to managing the economy while balancing inflation and growth.
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