Fed Chair Powell suggests long-awaited interest rate cuts are on the horizon

"Overall, the economy continues to grow at a solid pace. However, the inflation and labor market data show an evolving situation. The upside risks to inflation have diminished. And the downside risks to employment have increased," he said.

"The time has come for the policy to adjust." This remark by Powell marks a decisive shift towards considering interest rate cuts due to the changing economic landscape.

"As prices rose in recent years, the Fed raised rates accordingly to try to temper demand and help lower prices. That has seemingly worked, as the latest CPI report showed price increases of 2.9% during July."

"The Fed has a dual mandate: to keep prices stable, targeting 2% inflation per year, and to keep unemployment low, which has become increasingly challenging."

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