Fed Chairman Jerome Powell on Friday bluntly told the markets about the central bank's readiness to start lowering interest rates. In his keynote speech at the annual economic symposium of the Federal Reserve Bank of Kansas City in Jackson Hole, Powell stressed: «It's time to adjust policy.» Powell noted that «the direction of movement is clear», but the timing and pace of rate cuts will depend on incoming data, changing prospects and the balance of risks. His statement came just three weeks before the Fed's September 17-18 meeting, which is expected to see the first interest rate cut since 2020. Powell also noted the recent weakening in the labor market and stressed that the Fed « does not seek and does not support further cooling of the labor market situation.»
