Federal Reserve Chairman Jerome Powell emphasized that inflation is not the only risk to the US economy. Powell indicated that interest rates could be cut as more data comes in confirming disinflation. However, he warned that cutting rates too soon or too little could weaken the economy more than necessary.
Powell stated that the US job market has cooled but managed to remain strong. Low unemployment and slowing wage growth could help ease inflationary pressures. Powell said that patience is needed to bring inflation down to the 2% target level in a sustainable way and that the economy may face downside risks in the process.
