Federal Reserve Chair Jerome Powell highlighted progress in fighting inflation but stressed the need for more evidence before considering interest rate cuts. Recent inflation reports indicate a fading of price pressures, with a focus on maintaining this trend. Despite holding interest rates steady at their highest level since 2001, officials are open to possible rate cuts later in the year, contingent on greater confidence in declining inflation. The Fed projects just one cut this year, balancing the risk of triggering inflation again by cutting rates too soon versus impacting economic growth by waiting too long. Investors anticipate rate cuts in September or November, a shift from earlier expectations. Higher interest rates have impacted consumer and business loans, with borrowing costs rising across various financial products. Powell emphasized the importance of carefully navigating rate adjustments to support economic stability.