"Fed megaphone" Nick Timiraos responded to Powell's speech, stating that Powell did not explicitly mention a reduction of "25" or "50" basis points, but leans towards supporting a 25 basis point reduction as a starting point, while explicitly retaining the option to "adjust" the pace of interest rate cuts if new data indicates further deterioration. Powell said, "Based on the evidence I have seen, I do not believe the economy has entered a recession, nor is it necessarily heading towards one." We must pay attention to the "if" in his speech: "If the data indicates a need for a larger reduction, then I will also support it. When inflation accelerates in 2022, I strongly advocate for raising rates in advance, and if appropriate, I will support lowering rates in advance." "These decisions will be determined by new data." (May not include today's data) "Although I anticipate that the interest rate cuts will proceed cautiously as the economy and employment continue to grow, I am ready to take prompt action to support the economy when necessary, against the backdrop of stable inflation."