Federal Reserve Chair Jerome Powell signaled more gradual interest rate cuts are likely, aiming to support a still-healthy economy rather than moving rapidly.

Speaking at a business conference, Powell confirmed two more quarter-point cuts are expected this year, disappointing investors hoping for larger reductions.

The Fed’s focus has shifted from fighting inflation to maintaining employment and economic growth, with inflation at 2.2% and unemployment at 4.2%, the Associated Press has reported.

Powell emphasized that rate reductions aim for a “neutral stance” and will lower borrowing costs over time without rushing the process.

Written by B.C. Begley