U.S. Federal Reserve Chair Jerome Powell recently delivered remarks after announcing that the Federal Reserve would be leaving interest rates unchanged. Key data suggests that inflation is cooling in both the U.S. and the euro zone, leading to speculation that the Federal Reserve and European Central Bank may cut interest rates in September. Andrew Sheets, managing director and head of cross-asset strategy at Morgan Stanley, expressed optimism about the possibility of dual rate cuts based on recent consumer price index and labor market data. While the ECB recently implemented its first interest rate cut in nearly five years, the Fed has held off due to concerns about high U.S. inflation levels. However, as inflation moderates in both regions, it is increasingly likely that both central banks will make cuts in the coming months. Analysts expect the Fed to cut rates in September and later in the year, with the ECB also forecasted to lower rates in September and December.