Fed Chairman Jerome Powell says time has come to adjust monetary policy

In his much-anticipated keynote address at the annual Jackson Hole symposium in Wyoming, United States, on Friday, Federal Reserve Chairman Jerome Powell stated that the time has come to adjust monetary policy.

He said that further cooling would be unwelcome in the US jobs market.

The Fed Chair also exuded confidence that inflation is within reach of the US central bank's target levels.

"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," he said. 

Here are some key takeaways from what Powell said:

• Confidence has grown that inflation is on a sustainable path back to two per cent
• Inflation has eased as expected
• Top priority to stabilise consumer prices
• Supply chain back to normal
• COVID-related economic challenges ending
• An unmistakable slowdown in the labour market
• Downside risks to employment have increased
• We do not seek or welcome further cooling in labour market conditions
• Will do everything we can to support a strong labor market as we make further progress toward price stability