Powell Points to September Rate Cut but Doesn't Commit

Downside risks to employment rising: Fed chair at Jackson Hole meet

- AGENCIES

Federal Reserve Chair Jerome Powell opened the door to an interest-rate cut in September, pointing to rising risks for the labor market even as worries over inflation remain but stopped short of committing to such a move.

"The stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance," Powell said in remarks prepared for the Fed's annual conference in Jackson Hole, Wyoming on Friday. "Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."

Following Powell's remarks, investors boosted bets that the Federal Open Market Committee would cut rates at their September 16-17 meeting.