Federal Reserve Chair Jerome Powell stated that progress has been made in fighting inflation, but more evidence is needed before considering reducing interest rates. Inflation reports indicate a decrease in price pressures, and the Fed wants this trend to continue. Interest rates were held steady at their highest level since 2001, with the possibility of rate cuts later in the year. Evidence shows inflation easing, with core prices climbing at the slowest rate since 2021. Powell emphasized the need for a true reading of underlying inflation before making any policy changes. The Fed is balancing the risks of cutting rates too soon or too late, aiming to avoid triggering inflation or a recession. Investors now expect rate cuts in September or November, contrasting previous projections of more rate cuts earlier in the year. Higher interest rates have impacted borrowing costs across various sectors.