But, for now, interest rates are in a good place to deal with either threat, Powell said, suggesting he sees no urgency to lower rates aggressively. Powell’s latest comments come as the debate on further rate cuts heats up — a week after policymakers lowered interest rates for the first time since December. That would bring the Fed’s key interest rate to its lowest level since October 2022. The Fed typically only delivers large rate cuts in times of economic trouble. Some Fed officials are on the fenceSome Fed officials aren’t convinced that aggressive rate cuts in the coming months are necessary.