(Reuters) - U.S. stock index futures held gains on Wednesday after Federal Reserve Chair Jerome Powell in prepared remarks ahead of his testimony said the central bank expects to reduce its benchmark interest rate later this year.

Powell noted that inflation had "eased substantially" since hitting 40-year highs in 2022, but that policymakers still needed "greater confidence" in its continued decline before cutting rates.

At 8:32 a.m. ET, Dow e-minis were up 135 points, or 0.35%, S&P 500 e-minis were up 25.25 points, or 0.5%, and Nasdaq 100 e-minis were up 139.25 points, or 0.78%.