Viewpoint: Powell believes that interest rates remain tight, which may open up space for further rate cuts.

On September 24, "Fed's Mouthpiece" Nick Timiraos published an article: Fed Chairman Powell stated that even after last week's rate cut, he still believes that the Fed's Intrerest Rate stance is "still slightly tight," which means that if officials continue to judge that the recent weakness in the labor market outweighs the setbacks in inflation, there is still more room for rate cuts this year. Powell largely reiterated his views from the press conference following last week's rate cut. He emphasized the challenges the Fed faces in achieving the dual goals of maintaining low inflation stability and promoting a healthy labor market. Powell said: "The dual risks mean that there is no risk-free path; cutting rates too much or too quickly could keep inflation closer to 3% rather than the Fed's 2% target, while maintaining a restrictive policy stance for too long could unnecessarily weaken the labor market." Powell also reiterated his view that the slowdown in job growth this summer makes last week's policy shift necessary to focus more on the labor market than earlier this year. The slightly tight Intrerest Rate setting positions the Fed favorably to respond to potential economic developments. (Jin10)