The central bank has started cutting interest rates, but could change its strategy if inflation gets worse. Powell gave no indication as to when the Fed would reduce rates again, after cutting last week for the first time this year. When the job market deteriorates, it will normally lower interest rates to boost the economy. The Fed has started lowering interest rates to stabilize the faltering job market, but may need to keep them high if elevated inflation persists. So far, the compromise has been to lower rates and take pressure off of the job market.