Federal Reserve Chairman Jerome Powell said on Monday that the recent half-percentage-point cut in interest rates should not be interpreted as a sign that future moves will be as aggressive, even indicating that the next moves will be smaller.

The central bank chief argued during a speech in Nashville that he and his colleagues will try to balance reducing inflation with supporting the labor market and let the data guide future moves.

“Looking ahead, if the economy develops broadly as expected, policy will move over time to a more neutral stance. But we’re not on any set path,” he told the National Association for Business Economics in prepared remarks. “The risks are mutual and we will continue to make our decisions on a meeting-by-meeting basis.”

Powell indicated that if the economic data remains consistent, there will likely be two more cuts interest rates this year, but in smaller, percentage point, increments. This contrasts with market expectations for more aggressive easing.

“It’s not a committee that feels like it’s in a rush to cut rates quickly,” he said during a Q&A session after speaking with Morgan Stanley economist Ellen Zedner. “If the economy performs as expected, that would mean more rate cuts this year, a total of 50 [πόντους βάσης] more”.

It is noted that the ECB is expected to consider a new rate cut for the euro in October following the FED which cut its interest rates by half a point.