Nick Timiraos, the "Fed Mouthpiece", once again writes an article to interpret the Fed's latest interest rate decision.

Fed Chairman Powell boldly cut interest rates by 50 basis points, entering a new phase of the soft landing of the US economy that he pursues. But the move raises new questions that the Fed has difficulty answering.

The rate cut does clarify the answer to a more important question, namely the Fed's overall goal. It emphasizes Powell's desire to prevent past rate hikes from tipping the economy into a recession in the face of falling inflation. But the main question the Fed can't easily answer now is: to what level will the Fed cut interest rates, and how quickly will it cut them?

The Fed is unclear on both counts. When formulating policy, Fed officials typically look to find out where their interest rates are relative to the so-called neutral rate, which is unobservable.