Federal Reserve Chair Jerome Powell said the central bank is moving closer to cutting interest rates as inflation continues to cool, while stopping short of committing to a specific timeline. His remarks suggest policymakers see enough progress on prices to consider easing, but they are still weighing the risks of acting too soon.

Powell made the comments while speaking to lawmakers, underscoring that the Fed remains focused on balancing inflation against broader economic conditions. Officials have been cautious in recent months, signaling they want more confidence that price pressures are sustainably under control before changing course.

The prospect of lower borrowing costs has drawn close attention from households, businesses and markets, all of which have felt the effects of the Fed’s tight policy stance. Any decision to cut rates would likely reflect continued cooling in inflation data and the central bank’s effort to support growth without reigniting price pressures.