Federal Reserve Chair Jerome Powell hinted at the possibility of interest rate cuts in 2024, emphasizing the need for 'greater confidence' on inflation reaching the Fed's 2% target. Powell's remarks, which were part of his semiannual testimony before the U.S. Congress, also highlighted the current economic conditions, including 3.1% GDP growth in 2023, a tight labor market with job gains averaging 239,000 per month, and an unemployment rate at 3.7%. Despite easing inflation rates, they remain above the Fed's goal. The policy rate is considered to be at its peak for this cycle, with future adjustments contingent on inflation progress. Powell's comments led to a decline in the U.S. Dollar Index and positive movements in U.S. equity futures.