‘The time has come for policy to adjust,’ said Fed Chair Jerome Powell in his speech at Jackson Hole yesterday

The Federal Reserve Chair Jerome Powell gave people hope during his speech at Jackson Hole yesterday when he hinted that the central bank is soon likely to cut interest rates in the coming months.

“The time has come for policy to adjust,” he said, acknowledging cooling inflation and showing concern about the job market. However, Powell declined to provide the timeline and extent of the rate cut.

Powell’s speech suggested that the Fed’s inflation-fighting measures are winding down and that the focus is shifting towards supporting the economy.

Investors have reacted positively to his address. The Dow Jones Industrial Average added more than 400 points (about 1.1%), and the Nasdaq Composite went up 1.5%.

The next Fed meeting is scheduled for September 18, and officials are expected to announce a rate cut. It would be on the heels of the upcoming presidential election.