Federal Reserve's Jay Powell: Interest rates have been lowered to near "neutral levels" and caution should be exercised.

Federal Reserve Vice Chairman Jefferson said that, considering interest rates have been lowered to near "neutral level," the Fed should proceed cautiously. He pointed out that interest rates still have a "certain restrictive" effect on the economy, but added: "As we gradually approach neutral interest rates, it is reasonable to slow down." Jefferson said on Friday that he supported the Fed's decision to cut interest rates by 25 basis points last week - the second rate cut of 2025 - because the risk of a further cooling labor market is increasing. He said, "This step is appropriate, as I believe the recent balance of risks has changed and the downside risks to employment have increased." He did not indicate whether he supported another rate cut at the next meeting in December. Jefferson said that existing data shows that the overall economic situation in the United States has not changed much in recent months. He described the US economy as growing at a "moderate pace" and the labor market as "gradually cooling down."