Federal Reserve Chair Jerome H. Powell expressed growing confidence in the return to normalcy of price increases, citing recent inflation data. He indicated that further progress in this area could lead to a central bank rate cut in the future. Powell emphasized the need for sustained progress towards the 2 percent inflation target before considering any rate reduction. While earlier data did not provide sufficient confidence, recent readings have shown some improvement. Addressing the Senate Banking Committee, Powell did not specify a timeline for potential rate cuts but did not discount the possibility of a reduction as early as September. The Federal Reserve is set to meet in late July, with expectations leaning towards a rate cut later in the year. Powell's cautiously optimistic stance reflects the ongoing evaluation of economic indicators and the potential for policy adjustments to support sustainable economic growth.