Federal Reserve Chair Jerome Powell indicated that the central bank might cut interest rates at its September meeting if economic conditions remain favorable.

Recent data shows inflation moving toward the Fed’s 2% target and unemployment rising slightly above 4%.

Powell emphasized that rate decisions will be based on overall data trends rather than individual data points, CNBC has reported.

The Fed kept its benchmark rate steady at 5.25% to 5.50% but signaled that a potential 25-basis point cut could be considered if economic conditions support it.

The next Federal Open Market Committee meeting is scheduled for September 17-18.

Written by B.C. Begley