Federal Reserve Chair Jerome Powell used his keynote address at the Jackson Hole symposium to acknowledge that risks to employment now outweigh those to inflation, saying that “a change in the balance of risks could justify an adjustment of our policy.” The remarks mark a clear shift toward a more dovish stance and leave the door open to a federal-funds-rate reduction at the Federal Open Market Committee’s September meeting. Powell’s pivot comes after months of public criticism from President Donald Trump, who has repeatedly urged the Fed to loosen policy more aggressively. The political backdrop dominated discussions in Jackson Hole and rekindled concerns about the central bank’s independence, according to economists attending the conference. Financial markets reacted swiftly. Global equities advanced and a Bloomberg survey showed 84% of analysts now expect the Fed to cut rates next month. Traders also increased bets that additional easing could follow if hiring continues to slow or tariff-related price pressures subside. Policy watchers are divided over whether Powell’s move is a data-driven response to a weakening labor market or a capitulation to political pressure. The September decision will test the Fed’s credibility as it tries to balance slowing growth, tariff-driven inflation and intensifying scrutiny from the White House.