 In his testimony, Chair Powell explained that the economy is no longer overheated and the labor market has come into better balance. He's signaling then that the Fed, which has a dual mandate focused on both inflation as well as the job market, must keep an eye on both. His testimony reinforces the idea that the Fed will cut rates later this year, and this inflation report provides one more data point that inflation is cooling the way the Fed would like to see, and Fed rate cuts, in even the anticipation of them, may well drive market interest rates lower.