Jerome Powell is likely to tell lawmakers that Federal Reserve officials need further confirmation inflation is slowing before they’re in a position to cut interest rates, even with evidence building of softer growth and employment.

As unemployment ticks up and wage growth cools, Federal Reserve officials are watching for signs that the job market is about to crack.

By Ann Saphir (Reuters) -Federal Reserve policymakers got more evidence of U.S. labor-market cooling on Friday that could boost their confidence they are winning their fight on inflation, and open the path to a more active debate on interest-rate cuts when they next meet in late July.

Fed policy disproportionately impacts the housing market more than other sectors of our economy and the question is: Are they ready to pivot?

June payrolls were solid, but down slightly from May, while wage inflation slipped a few notches. Both continued trending toward what Powell has called ‘sustainable’ levels.