Powell: Policy will gradually shift towards a more neutral level
Federal Reserve Chairman Powell stated that interest rates are expected to continue to decline, but he hinted that the rate cuts may not be as significant in the coming months. Powell said the Federal Reserve might make more rate cuts because at least in the short term, economic trends and dynamics are expected to remain unchanged. This includes a slowdown in the job market and cooling inflation, while interest rates still remain restrictive; maintaining current high levels could potentially increase unemployment rates. Powell stated, "Over time, we will shift our policy towards a more neutral level."
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