Fed Chief: 'The Time Has Come for Policy to Adjust'

The Fed chief gave a highly anticipated speech on Friday and delivered words Wall Street very much wanted to hear: "The time has come for policy to adjust." Translation: The Federal Reserve plans to cut interest rates at its September meeting, reports the Wall Street Journal. While Powell didn't explicitly say that, he offered his strongest hint yet of what's to come. "We do not seek or welcome further cooling in labor market conditions," he said, referring to the policy of raising rates to keep inflation in check.

Powell did not, however, provide specifics on how much rates might be cut, notes CNBC. "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," he said. The markets were happy nonetheless: The Dow was up more than 400 points as the Powell's words began circulating. Inflation has been falling steadily for months, though it still remains above the Fed's target rate of 2%. (More Federal Reserve stories.)