Federal Reserve Chair Jerome Powell stated on Monday that the three inflation indicators from the second quarter of this year demonstrated that further advancements were being made towards reducing the rate of price increases to align with the Fed's target. "In the second quarter, we indeed made additional progress," Powell remarked during an event at the Economic Club of Washington. "We've seen three improved readings, and when averaged, they indicate a favorable position." Powell's comments are expected to be his last until his press conference after the Fed's July 30-31 meeting. This week, Fed governors Christopher Waller and Adriana Kugler, along with other senior Fed officials, will speak, potentially shaping the central bank's perspective during a crucial period in their discussions. Inflation is nearing the central bank's 2% target, and policymakers are growing increasingly wary of slowing the economy excessively and increasing the unemployment rate. Given the policymakers' perception of a more balanced risk profile, they might utilize their final remarks before this month's meeting to signal imminent rate cuts or to justify why recent data does not yet support a shift towards more accommodative monetary policy. Investor sentiment strongly favors the Fed initiating rate cuts in September. Modifications to the policy statement in July could strongly indicate this by updating the description of inflation and evaluating how recent data has bolstered policymakers' confidence that the pandemic-era surge in inflation has subsided.