Analysts are starting to wonder if Fed chair Jerome Powell may achieve what many believed impossible: bringing the economy down from a period of rampant inflation without plunging it into a recession.

Federal Reserve Chair Jerome Powell on Monday said the U.S. economy is in "solid shape" and that more interest rate cuts can continue if the economy continues to evolve as expected.

While rate cuts by the Fed typically lower borrowing costs, experts say increased affordability in mortgages could lead to a higher demand for homes that would drive up home prices.