However, Powell also stated that he continues to see two-way risks posed by potential worsening inflation and employment conditions ahead, indicating there is no risk-free path forward for rates.
The US Federal Reserve cut the Federal Funds Rate by 25 basis points on Sept 17. The first rate cut in nine months places rates in the range of 4% to 4.25%, the lowest since late 2022.
In a speech to business leaders in Providence, Fed chair Jerome Powell shared his view that current policies are moderately restrictive, which leaves the Fed in a good position to respond to economic needs.
