Federal Reserve Chair Jerome Powell testified before Congress, indicating a potential shift towards cutting interest rates due to a slowing job market and persistent inflation above the Fed's 2% target. From March 2022 to July 2023, the Fed raised its benchmark interest rate 11 times to 5.3% to combat peak inflation of 9.1%. Although inflation reports for early 2024 hadn't boosted confidence significantly, recent data showed modest progress. The unemployment rate rose to 4.1%, and though hiring remained solid, the job market wasn't causing widespread inflationary pressures. Powell mentioned a possible timeline for rate cuts, possibly in September, and plans to revise a capital requirements proposal for banks. Democratic senators have urged Powell to start reducing rates, reflecting a push for monetary easing.
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