The central bank is increasingly clear about less drastic rate hikes

The Federal Reserve is more likely to cut interest rates. In a speech, Chairman Jerome Powell reiterated that the Fed will raise rates in less large steps starting in December than in recent interest rate decisions.

Central banks around the world are raising interest rates to prevent prices from continuing to rise as they are now. If borrowing becomes more expensive, there is less money circulating in an economy, which should reduce inflation, or so the idea goes.

In the United States, the key interest rate has now risen to 3.75 percent to 4 percent from 0 percent in March. Powell again warned that interest rates will continue to rise for longer than he predicted in September.

Economists expect a slowdown, partly as a result of higher interest rates. But Powell said in a speech to the Brookings think tank that the world’s largest economy still has a good chance of a soft landing.

The U.S. economy grew only modestly in November, the Fed wrote in a monthly report. In a study called the Page Book, companies note that high inflation and rising interest rates have made borrowing more expensive.