Federal Reserve chairman Jerome Powell has said the time has come for base rates to be cut in the US.
“The time has come for policy to adjust,” he said on Friday during a speech at the Jackson Hole Symposium.
“The direction of travel is clear and the timing and pace of rate cuts will depend on incoming data.”
Markets had been anticipating the central bank would begin cutting rates from September, though the depth of these remains in the air.
"Overall, the economy continues to grow at a solid pace," Powell continued.
"But the inflation and labour market data show an evolving situation. The upside risks to inflation have diminished. And the downside risks to employment have increased."
US markets got a boost on the comments, with the Nasdaq jumping 1.4%, the S&P climbing 1% and the Dow Jones adding 0.8%.