Federal Reserve Chair Jerome Powell signalled at the Jackson Hole Economic Policy Symposium that the central bank could lower interest rates as soon as its 16–17 September meeting. He said that “with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” Powell highlighted a labour market he described as in a “curious balance,” warning that downside risks to employment are rising even as inflation remains above the Fed’s 2% goal. He acknowledged that tariff-driven price increases are now clearly visible but argued the impact is likely to be temporary, allowing policymakers to proceed carefully. Investors took the remarks as the clearest hint yet of imminent easing. Fed-funds futures placed the probability of a quarter-point September cut near 90%, the dollar retreated and the two-year Treasury yield fell roughly eight basis points. Equity markets rallied on the prospect of lower borrowing costs. The Dow Jones Industrial Average jumped about 900 points to a record high, while the S&P 500 rose roughly 1.5%. Bitcoin and other risk assets also advanced. The Fed has kept its target range at 4.25%–4.50% since December. Powell also unveiled a revised policy framework that drops the 2020 “make-up” strategy and returns the central bank to flexible inflation targeting, reaffirming a commitment to keep long-term inflation expectations anchored while balancing its dual mandate.