Fed Chair Powell signals first post-pandemic interest rate cut is coming

Rob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.

Federal Reserve Chair Jay Powell said Friday he expects the central bank will cut its key interest rate in the near future in response to slower economic growth and cooling inflation. At a speech during the Fed's annual August summit in Jackson Hole, Wyoming, Powell said 'the time has come for policy to adjust.

'The labor market is no longer overheated, and conditions are now less tight than those that prevailed before the pandemic. Supply constraints have normalized. And the balance of the risks to our two mandates has changed.” Markets initially responded favorably to the news, with the Dow Jones Industrial Average surging 300 points. The speech was highly anticipated as the U.S.

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