Federal Reserve Chair Signals Imminent Interest Rate Cuts

Federal Reserve Chair Jerome Powell stated the need for the U.S. central bank to cut interest rates as job market risks grow and inflation nears the Fed's 2% target. Powell's address at an economic conference endorsed imminent policy easing, noting the importance of incoming data in guiding future rate cuts.

Federal Reserve Chair Jerome Powell stated on Friday that it is time for the U.S. central bank to cut interest rates due to increasing risks in the job market. Powell's comments came during a highly anticipated speech at the Kansas City Fed's annual economic conference in Jackson Hole, Wyoming.

'The upside risks to inflation have diminished, and the downside risks to employment have increased,' Powell said. He emphasized that policy must adjust, with the direction and pace of rate cuts depending on future data and the evolving outlook.

After Powell's remarks, the S&P 500 gained 0.92%, the yield on benchmark U.S. 10-year notes fell to 3.812%, and the dollar index dropped 0.394%. Market experts believe the Fed will cut rates in September, while the extent of future cuts will depend on upcoming economic data.