What is the significance of FED Chairman Jerome Powell's speech? Will the interest rate continue to remain high?

According to Nick Timiraos, a reporter for the Wall Street Journal, often seen as the 'Fed's mouthpiece,' the Federal Reserve is not in a hurry to cut interest rates because officials are encouraged by recent inflation data showing downward pressure on prices towards the central bank's 2% target. The U.S. economy remains strong, allowing policymakers to approach cautiously when deciding whether to cut interest rates or not, Fed Chairman Jerome Powell said before Congress today. The Fed had previously cut interest rates by a full percentage point in three consecutive meetings in 2024, after a period of record high interest rates. In his prepared remarks before the Senate Banking Committee, Powell said: "Our current policy stance is much more adaptable now and the economy remains strong, so there is no need to rush to adjust our policy stance". Powell defended last year's interest rate cuts, calling it a necessary adjustment to adapt to the improving inflation trend and cooling labor market conditions. He said further rate cuts could be considered if the labor market unexpectedly weakens or if inflation reaches the Fed's 2% target earlier than expected.