Federal Reserve Chair Jerome Powell told House lawmakers Wednesday that interest rate cuts are likely "at some point" in 2024, and that he is open to large changes to a controversial proposal requiring banks to hold more capital.

The central bank boss covered a number of topics during three hours of testimony before the House Financial Services Committee, touching on everything from immigration to commercial real estate to housing.

Two subjects dominated, however: monetary policy and bank regulation.

Powell made it clear he still expects cuts "at some point this year" even after some hot readings on inflation while also cautioning that the Fed would take its time.

"We want to see a little bit more data," he added during the question-and-answer session.

Powell also clarified Wednesday that he expects "broad and material" changes to a proposed Fed rule that would require the biggest US lenders to hold greater buffers against future losses.

The rule, the most aggressive change to how banks are regulated since the aftermath of the 2008 financial crisis, has been criticized by Republicans, some Democrats, and many banks.

"It's more important that we get this right than we do it fast," he said of that proposal, known as the Basel III endgame.

He didn't rule out heeding calls to pull back the idea and start over with a re-proposal.

"If that turns out to be the appropriate thing, we won't hesitate to do it," Powell said.





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