Powell called this rate cut a risk management decision, shifting the policy focus from inflation to employment.

According to the Finance and Economics APP, on Wednesday, after the Federal Reserve announced its latest interest rate decision, Chairman Powell stated at a press conference that this action is a "risk management" rate cut. With the labor market cooling down, inflation still above target and short-term upside risks, the committee chose to take a step towards a more neutral policy stance, while maintaining a "meeting-by-meeting" approach to flexible adjustment based on data and risks rebalancing.