Fed's Powell sees 'no risk-free path' for interest rates after central bank's cut last week

Group 1 - Federal Reserve Chairman Jerome Powell indicated that there is "no risk-free path" for the central bank's next policy move due to elevated inflation and a weakening job market [1][2] - The Fed recently cut interest rates by 25 basis points and projected two more cuts of the same magnitude by year-end, reflecting a divided stance among policymakers regarding future monetary policy [2][4] - New Fed governor Stephen Miran suggested that benchmark interest rates should be around 2 percentage points lower than the current range of 4% to 4.25%, arguing that current rates are too restrictive and could exacerbate unemployment [3][4] Group 2 - The Fed's dual mandate requires balancing inflation control with maximizing employment, creating a complex environment as inflation remains above the 2% target while the labor market shows signs of weakness [4][6] - The Personal Consumption Expenditures index, the Fed's preferred inflation measure, is currently at 2.9%, with new data expected to be released soon [6] - Powell emphasized that the current policy stance is "modestly restrictive" and that the Fed will adapt its approach based on new economic data and the evolving balance of risks [7]