The latest Consumer Price Index (CPI) report indicates inflation is receding, with overall CPI falling 0.1% in June, the first decline since May 2020. Core CPI rose a mild 0.1%, marking the smallest annual increase in over three years. President Biden highlighted significant progress in fighting inflation while noting that costs remain high. Federal Reserve Chair Jerome Powell, during his congressional testimony, expressed cautious optimism about achieving stable prices and low unemployment. Powell emphasized the need for more data before cutting interest rates but acknowledged that the cooling labor market indicates reduced inflationary pressures. Market reactions were mixed, with some sectors gaining in response to Powell's comments about potential rate cuts if positive data continues to emerge.