As Families are struggling with economy, Federal Reserves Chairman Jerome Powell hinted on Friday that the central bank may be ready to implement possible interest rate cuts, mentioning a potential shift in monetary policy. While he did not specify the size of the cut, he emphasized that the Federal Reserve is not looking to further cool labor market conditions, which suggests a cautious approach.

Federal Reserve’s primary goal is to maintain a 2% annual inflation rate. The Fed’s preferred inflation gauge, indicated that inflation had eased to a 2.5% annual rate in June. This drop brings inflation closer to the Fed’s target, reinforcing expectations for a rate cut.