#PowellRemarks Speaking largely very well observed speech of the year, Jerome H. Powell, the chairman of the Federal Reserve, clearly indicated on Friday that the central bank was ready to cut interest rates in September.

And although Mr. Powell did not give a clear idea of how large that move might be, he strongly emphasized that the central bank is prepared to adjust policy to protect the labor market from further weakening and to keep the economy on a path toward a soft landing.

"The time has come for policy to adjust," said Powell during the annual Fed conference in Kansas City at Jackson Hole in Wyoming. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."

Mr. Powell's speech was his firmest statement yet that the Fed is turning a corner in its fight against inflation. After more than a year of keeping interest rates at 5.3 percent, the highest level in more than two decades, officials finally have enough confidence to change their stance by cutting rates at their meeting on September 17-18.

The Fed's impending decision on how much to cut interest rates — and how quickly to proceed with cuts after September — comes at a tense political moment. The central bank is poised to begin lowering interest rates just weeks before the November presidential elections.