Federal Reserve officials have sent the strongest signals yet that they are preparing to cut interest rates, raising the prospect of relief for long-suffering American borrowers for the first time since inflation exploded across the world’s largest economy in the aftermath of the coronavirus pandemic.

In public appearances this week — including a pair of congressional hearings for chair Jay Powell — US central bankers spoke with a newfound assurance about their grip on inflation and readiness to embark on a policy pivot.

Buoying their conviction was better than expected economic data, which this week affirmed a continuing downshift in consumer price pressures. That has come alongside a softening of the labour market. At the same time, US banks have warned that lower-income customers are showing signs of financial stress after a long period of high prices.