The U.S. central bank might have begun cutting interest rates in late July had it known that the labor market was cooling as fast as it has been, Federal Reserve Chair Jerome Powell said on Wednesday.

If the Fed cuts interest rates today, borrowers will likely see interest rates ease off their peaks on things like credit cards and auto loans.

And as officials embark on a new era — cutting interest rates for the first time since 2020 — at their next Federal Open Market Committee (FOMC) gathering on Sept. 17-18, the Fed’s past mistake is haunting investors and economists.