Three months ago, as the Fed neared its first rate cut since the pandemic, Powell outlined the factors affecting the U.S. economy. When asked about the pace of easing in June, the Fed chairman told reporters: "This is a decision with far-reaching consequences, and we want to get it right."

As concerns about inflation give way to worries about jobs, the Federal Reserve is poised to begin an expected series of interest rate cuts this week, which would bring some relief to Americans after U.S. borrowing costs remained at a 23-year high of 5.25-5.5% for more than a year.

“In all likelihood, this is the beginning of a rate-cutting cycle that will last a long time, so it’s a pretty important meeting,” said Alan Blinder, a former Fed vice chairman who served under Alan Greenspan in the early 1990s.

For Powell, whether the Fed can avoid further weakness in the labor market and achieve a "soft landing" will be key to cementing his legacy of navigating the global financial system through the biggest contraction since the global financial crisis and the worst inflation crisis in decades.

Blinder pointed out that the current Fed leadership had to deal with the COVID-19 pandemic, the war between Russia and Ukraine, and even more severe inflation. "Greenspan became a god then, but that was easy compared to the challenges they face now. If Powell achieves a soft landing, he will go down in history."

The Fed’s success may depend largely on how quickly it returns monetary policy to a more “neutral” level. If it eases too quickly, the Fed could allow high inflation to become entrenched; if it is too slow, it could cause unnecessary economic damage.

In addition, workers' historical gains after the impact of the COVID-19 pandemic may also be affected, as is the US presidential election in November, where Harris and Trump's support rates are currently neck and neck.

The Federal Reserve will make a decision to cut interest rates by 25 basis points or 50 basis points in the early hours of Thursday morning, and the futures market has priced the same probability for both possibilities.

“There is reason to believe the U.S. economy can achieve a soft landing with appropriate policies,” said Julia Coronado, a former Fed economist and president of MacroPolicy Perspectives. “I would advocate starting with a big 50 basis point rate cut and lowering the policy rate by a full 100 basis points this year, with an additional 1.5 percentage point cut expected by the end of 2025.”

“Communication is going to be key, and it’s going to be as important as the decisions they make,” said William English, a Yale University professor and former head of the Fed’s monetary affairs division.

“If they cut by 25 basis points, they want to make it clear that they are not behind the curve and blind to economic conditions and will move quickly if necessary; if they cut by 50 basis points, they want to make it clear that they are not in a rush to move to the neutral rate,” he said.

“It’s easy to go wrong in either direction,” he warned.

Ellen Meade, a senior adviser to the Fed’s board of governors until 2021, cautioned that neither option was likely to gain unanimous support.

“Different opinions are actually helpful in the policy-making process because they can help examine an issue more comprehensively,” she said. “But if more than two officials disagree with a rate cut decision, it will attract more public attention or more attention.”