U.S. Federal Reserve chair Jerome Powell made the remarks Friday at the Kansas City’s Fed’s annual conference in Jackson Hole, Wyo. His comments affirm existing expectations based on cooling inflation and minutes from the Federal Reserve’s July meeting released Wednesday, which revealed “the vast majority” of officials believed an interest rate cut “would likely be appropriate” at their next meeting in September. (The Logic)

Talking point: Powell’s remarks suggest the Fed is ready to change tacks in its two-year battle against inflation. The U.S. central bank has held rates steady in a range between 5.25 per cent and 5.5 per cent for over a year amid strong economic data. Powell said it’s now “unmistakable” that the labour market is cooling, something he and other officials “do not seek or welcome further.” The Bank of Canada made its first rate cut in more than four years in June, dropping it further to 4.5 per cent in July.