Jerome H. Powell, the Fed chair, and Christine Lagarde, the European Central Bank chief, sounded optimistic about recent inflation data but reiterated the need for more confidence for rate cuts.

Inflation in the United States is slowing again after higher readings earlier this year, Federal Reserve Chair Jerome Powell said, while adding that more such evidence would be needed before the Fed would cut interest rates.

The U.S. is back on a "disinflationary path," Federal Reserve Chair Jerome Powell said on Tuesday, but policymakers need more data before cutting interest rates to verify that recent weaker inflation readings provide an accurate picture of the economy.