'Time has come' for Fed to cut rates: Powell at Jackson Hole

Chair of the Federal Reserve of the United States Jerome Powell said the time has come for the Federal Reserve to cut its key policy rate, affirming expectations that officials will begin lowering borrowing costs next month and making clear his intention to prevent further cooling in the labour market.

"The time has come for policy to adjust," Powell said Friday at the Kansas City's Fed's annual conference in Jackson Hole, Wyoming. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks."

The Fed chief also acknowledged recent progress on inflation, which has resumed moderating in recent months after stalling earlier in the year: "My confidence has grown that inflation is on a sustainable path back to 2 per cent," he said, referring to the central bank's inflation target.

Treasury yields fell and the S&P 500 index of US stocks rose while the dollar declined.