Federal Reserve ChairmanJerome Powellhas dispelled any remaining uncertainty by signaling that the central bank is preparing to shift its monetary policy, effectively paving the way for imminent interest rate cuts.

His remarks triggered a rally in rate-sensitive assets and pushed the dollar towards the lowest close since July 2023.

"The time has come for policy to adjust. The direction of travel is clear," Powell announced at the Jackson Hole Symposium on Friday in Wyoming.

Powell expressed increased confidence in inflation returning to the 2% target and highlighted a heightened focus on the labor market, noting that conditions are cooling.