He hinted that resuming the threshold for rate hikes would require something more serious than inflation stagnation around current levels. "If we do see inflation sideways and we don't gain more confidence, then, in that case, it may be appropriate to postpone a rate cut," he said. ”

Powell also outlined two other scenarios: one in which the labor market shows substantial and unexpected weakness, and the other in which inflation returns to last year's downward trend. "These are the ways in which we could cut interest rates," he said.