Federal Reserve signals cautious rate cut: easing inflation may drive policy adjustments this year

【Blockchain Rhythm】Federal Reserve Chair Powell’s recent remarks have attracted market attention. She pointed out that if inflation cools down, the Federal Reserve might consider further rate cuts, but also emphasized that any new easing steps may not be implemented quickly.

Powell remains cautiously optimistic about the easing of upward pressure on prices in the coming months. As her first time serving as a voting member of the Federal Open Market Committee this year, her views are particularly noteworthy. She believes that the current interest rate target range of 3.5% to 3.75% remains “somewhat restrictive”—a level sufficient to suppress inflation and leave room for future policy adjustments.

According to her speech, Powell stated: “If inflation indeed eases and the economy remains on its current trajectory, it may be reasonable to make moderate adjustments to the federal funds rate in the second half of this year.” However, she also pointed out that signals from the labor market are “mixed.” Overall, while the market faces pressure, there are no signs of a collapse yet. In this context, she is awaiting more economic data to better assess how the situation will develop.

This statement essentially hints that Powell may want to gather more evidence before further supporting policy adjustments, to observe how the economy evolves in the coming months. This cautious stance reflects the Federal Reserve’s conservative approach in the face of uncertainty.