US economy no longer overheated, Fed's Powell tells Congress

Fed Chair Jerome Powell informed Congress that the U.S. job market has cooled from its pandemic extremes, indicating a stronger case for potential interest rate cuts. Powell emphasized the balance of risks the Fed now faces, highlighting recent improvements in inflation and economic conditions. Despite not signaling specific future actions, analysts suggest Powell's remarks hint at a possible rate cut as early as September. The Fed’s policy rate remains at 5.25% to 5.5% since July 2023. Powell’s semiannual Senate testimony will be followed by a House hearing on Wednesday.