Powell indicates conditions 'may warrant' interest rate cuts as Fed proceeds 'carefully'

Monetary Policy Stance - Monetary policy is not on a preset course, decisions are based on data assessment and its implications for the economic outlook and balance of risks [3] - The policy rate is now 100 basis points closer to neutral than a year ago [2] - With policy in restrictive territory, the shifting balance of risks may warrant adjusting the policy stance [3] Economic Outlook & Risks - Risks to inflation are tilted to the upside and risks to employment to the downside [1] - The stability of the unemployment rate and other labor market measures allows for careful consideration of policy changes [2]