Federal Reserve Chair Jerome Powell discussed the possibility of interest rate cuts should positive economic data support it, as recent reports have shown signs of cooling in the labor market and inflation. The central bank left rates unchanged in June but is now considering one rate cut in 2024, down from previous forecasts. Powell emphasized the need for inflation to reach about 2% before cuts but also highlighted the risks of waiting too long. Recent data indicates a return to pre-pandemic economic conditions, with further progress expected. The Fed's independence in setting monetary policy was also emphasized, with the need for a longer-term perspective. Powell's comments suggest a potential interest rate cut in September, depending on forthcoming economic data. The overall outlook remains cautious, with an eye on maintaining stable economic growth.