U.S. FED CHIEF STRONGLY SIGNALS RATE CUT IN SEPT

US Federal Reserve Chair Jerome Powell gave a strong indication that it was time for the US central bank to reduce interest rates as inflation rates were aligning with its target.

Addressing the muchawaited Jackson Hole Symposium on Friday, Powell said that "the time has come for policy to adjust" but stopped short of giving a hint on the quantum of interest rate cut.

"The time has come for policy to adjust. 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," Powell said.

Faced with high inflation during the Covid-19 pandemic, the US monetary policy committee, as part of its commitment to restoring price stability, raised the policy rate by 425 basis points in 2022 and another 100 basis points in 2023. It held the policy rate at its current restrictive level since July 2023.For much of the past three years, inflation ran well above Fed's 2 percent goal, and labor market conditions were extremely tight.