The latest statistical data showed a slowdown in inflation in the U.S., but more evidence is needed to start lowering interest rates, Fed Chairman Jerome Powell said. He did not specify the timing of the start of the reduction, but noted "substantial progress" in the fight against inflation and expressed hope for the continuation of this trend, Business Insider reports.

Speaking at an ECB forum in Sintra, Portugal, he called the U.S. economy and labor market "strong" and noted that this allows Fed members to act prudently. Powell also stressed the importance of balancing controlling inflation with avoiding labor market problems.

Inflation data released last week showed encouraging results, with the Fed's preferred rate of inflation (PCE) rising 0.1% in May, the lowest in six months. Still, some Fed officials are concerned about the state of the labor market Hiring has slowed and the unemployment rate has risen to 4%.