Fed sound bite: Powell brings back rate cuts, underscores cautious optimism

In his latest article, Wall Street Journal reporter Nick Timiraos, known as the "Fed's sounding board," writes that Federal Reserve Chairman Jerome Powell has brought rate cuts back into view. Powell's remarks underscored a cautious optimism that had faded after April's disappointing inflation data.

He said the economy had made "significant progress", "real progress" and "considerable progress" in reducing inflation while achieving steady growth. But he remains cautious about cutting interest rates, which suggests that the Fed is still unlikely to cut rates at its meeting later this month. In addition, Powell declined to say whether he was preparing for a rate cut in September. He said, "I'm not going to set any specific dates here today."