Federal Reserve Chair Jerome Powell expressed optimism about the receding inflation data, indicating a potential interest rate cut. The Fed is encouraged by recent progress but aims to strike a balance between preventing inflation and bolstering the economy. Powell highlighted the importance of reducing policy restraint at the right moment to avoid economic weakness. While officials maintained interest rates at a 23-year high, there is speculation about rate cuts later in the year to support economic growth. The recent cooling of inflation and slowing core prices have increased the likelihood of rate cuts. Powell's statements have fueled expectations of rate cuts in the near future, with investors predicting two reductions this year. Addressing concerns about the housing market, Powell emphasized the need to control inflation to lower mortgage rates and increase housing supply through legislative measures.