Powell delivered the guidance in a highly anticipated speech on Friday at the central bank's annual symposium in Jackson Hole, WY.

Morgan Stanley expects the U.S. Federal Reserve to begin cutting interest rates in September, from its earlier view of the Fed staying on hold until March 2026, after Chair Jerome Powell signaled a shift in focus toward labor market risks in remarks at Jackson Hole.

Fed Chair Jerome Powell signals the first rate cut could come next month. On Way Too Early, Courtenay Brown breaks down why Wall Street cheered — and why some see a red flag.