Powell, speaking before the Senate banking committee, noted several times the central bank faces more balanced risks between slicing rates too soon and reigniting inflation, and waiting too long and weakening the economy and job market. The Fed's mandates are to achieve stable prices and maximum employment.

A weakening labor market could persuade the Fed to cut rates even as inflation is not yet back to the Fed's 2% goal.

Federal Reserve Chair Jerome Powell said on Monday the three U.S. inflation readings over the second quarter of this year do "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion,

Chair Jerome Powell said the Federal Reserve is becoming more convinced that inflation is headed back to its 2% target and said the Fed would cut rates before the pace of price increases actually reac

Federal Reserve Chairman Jerome Powell said Monday that recent inflation readings had boosted the Fed's confidence on bringing down inflation, suggesting the central bank is moving closer to rate cuts.

"The U.S. economy has performed really remarkably well over the last couple of years," Federal Reserve Chair Jerome Powell said on Monday at an event hosted by the Economic Club of Washington, DC. The labor market is now no longer tighter than it was at the end of 2019,