At the ECB Forum on Central Banking, Federal Reserve Chair Jerome Powell emphasized a careful approach Tuesday to potential interest rate cuts and stressed the critical issue of the United States' unsustainable debt path.

Speaking on a panel with ECB PresidentChristine Lagardeand Central Bank of Brazil GovernorRoberto Campos Netoin Sintra, Portugal, Powell reiterated that the latest inflation readings indicate a return to a disinflationary path, but warned that more data is needed before considering rate cuts.

When asked by CNBC'sSara Eisen why the Fed hasn't followed the European Central Bank's rate cuts...