Powell delivered the guidance in a highly anticipated speech on Friday at the central bank's annual symposium in Jackson Hole, WY.

Major brokerages anticipate a 25-basis-point rate cut by the U.S. Federal Reserve in September, following Chair Jerome Powell's speech at Jackson Hole highlighting labor market risks. Powell's remarks led Barclays and others to adjust their rate cut forecasts,

Investment bank Morgan Stanley says that the Federal Reserve will begin cutting interest rates starting in September, reversing its prior views of the Fed choosing to hold rates steady through March 2026.