In recent remarks, Jerome Powell suggested that the Federal Reserve is likely to continue cutting interest rates due to a slowdown in the U.S. labor market and persisting inflation concerns. He emphasized that the economy, while showing some signs of stability, still faces significant risks related to employment and inflation. Powell indicated that the tightening program could soon come to an end and opened the door for further rate cuts, citing weak hiring and rising downside risks to employment. Investors reacted positively to his comments, as they reignited hopes for a more accommodative monetary policy. The Fed Chair also noted that the balance sheet drawdown may conclude in the coming months, which could provide additional support to the housing market amid these uncertainties.