Federal Reserve Chair Jerome Powell said the central bank is likely to move carefully on interest rates, even as investors increasingly expect cuts. He pointed to lingering uncertainty over inflation and the strength of the labor market as reasons to avoid rushing policy changes.

Powell’s remarks suggest the Fed remains focused on incoming economic data rather than market pressure for faster easing. That cautious stance has kept traders watching each new inflation reading and jobs report for clues about when the central bank might begin lowering borrowing costs.

The Fed has been trying to balance two risks: slowing the economy too much with high rates, or easing too soon and allowing inflation to flare again. Powell did not signal an immediate shift, but his comments reinforced that policymakers are likely to wait for clearer evidence before acting.

For households and businesses, the message is that borrowing costs may stay elevated for now. Any move toward rate cuts will depend on whether inflation continues to cool and whether the labor market shows signs of weakening.