Obviously you need to re-wind it first. He did not say they were encouraged to feel compassion, he said compassion, which he defined as UNCONDITIONAL LOVE, was central to a Jedi.
He then said you might say they were encouraged to love.
In any case, the point that ONLY attachment and possession is forbidden is the important bit. Jedi are allowed all the emotions anyone has, just they must not let them rule them and must not become attached to things.