Fed Likely to Cut Rates Cautiously and Gradually Due to Solid Economy

Rates likely to come down slowly and less steadily than past cycles due to still-strong economy

Fed wants to avoid harming economy and triggering rebound in inflation

Strength of job market and surprise pickup in inflation reinforce cautious stance

Timing and pace of cuts will depend on economic data rather than set schedule

Taking cuts in two stages with pauses in between is one option under discussion