Federal Reserve Chair Jerome Powell announced that the Fed will likely reduce interest rates slowly in the coming months, as inflation is still below the 2% target and the economy remains strong.

While the Fed has already made some cuts, including a quarter-point reduction last week, Powell emphasized caution in future decisions.

He also noted that inflation may remain slightly above the target in the short term but is expected to decrease gradually.

Powell defended the Fed’s independence from political pressure, stressing it has helped maintain public confidence in controlling inflation, the Associated Press has reported.

However, uncertainty remains among Fed officials regarding how much further to cut rates, with inflation remaining persistently high in certain areas.

Written by B.C. Begley