Powell: The Federal Reserve's interest rates remain on the tight side, and there is still room for rate cuts

ChainCatcher news, according to Jinshi reports, Federal Reserve Chairman Powell stated that even after last week's rate cut, he still believes the Fed's interest rate stance is "still slightly tight," which means that if officials continue to judge that the recent weakness in the labor market outweighs the setbacks on inflation, there is still more room for rate cuts this year. He emphasized that the Fed faces challenges in achieving low inflation stability and promoting a healthy labor market. Powell pointed out that cutting rates too much and too quickly could bring inflation closer to 3% instead of the Fed's 2% target, while maintaining restrictive policies for too long could weaken the labor market.