On Wednesday, Federal Reserve Chairman Powell stated that any interest rate cuts by the Federal Reserve in 2025 will be based on upcoming data rather than current results. He said, "I believe that our actual reductions next year will not be due to anything we are adjusting today. We will respond to the data; this is just the general sense that the committee feels might be appropriate," when asked about the expectation of two rate cuts of 25 basis points in 2025, instead of the previously predicted four cuts. Powell added, "As for further rate cuts, we will focus on further progress in inflation as well as the continued strength of the labor market." As long as the economy and labor market remain stable, caution can be maintained when considering further spending cuts.