Important Takeaways:

• Federal Reserve chair Jerome Powell said Friday that the central bank is poised to cut interest rates, adding that policymakers do not want to see the job market cool any further.
• In a much-anticipated speech in Jackson Hole, Wyoming, Powell said the Fed’s fight to reduce inflation has largely succeeded and it now is attuned to risks of a faltering job market — setting up a rate cut in mid-September.
• The unemployment has now risen to 4.3%, up nearly a percentage point from recent lows, raising alarm bells about a weakening economy.
• “We do not seek or welcome further cooling in labor market conditions,” he said, in a notable contrast with his tone over much of the last two years, when he described a cooling in the job market as needed in order to bring the economy into better balance.
• Between the lines: “We will do everything we can to support a strong labor market as we make further progress toward price stability,” Powell said, suggesting the recent worsening of the job market — the unemployment rate has risen from 3.7% in January to 4.3% in July — has the Fed’s attention.

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