Federal Reserve Chair Jerome Powell signaled that the central bank could consider cutting interest rates at its next meeting if inflation keeps easing. His remarks came after new consumer price data for May showed slower price growth than many economists had expected.

The comments suggest policymakers are becoming more open to easing borrowing costs after a prolonged period of tight monetary policy aimed at bringing inflation down. Markets closely watched the latest CPI report for clues about when the Fed might begin lowering rates, which would affect mortgages, loans and other forms of credit.

Powell did not promise a cut, and officials are still expected to weigh upcoming economic data before making a final decision. Inflation remains above the Fed’s long-term target, but the recent cooling trend has strengthened expectations that a shift in policy could come as soon as the July meeting.

The prospect of lower rates has also raised hopes for relief among households and businesses facing high financing costs. Even so, the Fed is likely to move cautiously, balancing the risk of easing too soon against the possibility that inflation could pick up again.