Powell delivered a Jackson Hole classic. You can find a transcript here, but here are some key quotes that stood out to me:

On Inflation

“My confidence has grown that inflation is on a sustainable path back to 2 percent.”

The risks associated with inflation are no longer the primary focus.

On Employment

“It seems unlikely that the labor market will be a source of elevated inflationary pressures anytime soon. We do not seek or welcome further cooling in labor market conditions.”

The labor market doesn’t need to weaken further for the Fed to start normalizing (cutting) rates. Good news is good news.

On Policy

“The time has come for policy to adjust. 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.”

This is the most significant statement. While the Fed has consistently avoided committing to a specific action at any given meeting to maintain their data-dependent approach, this statement outlines a clear intent. The committee is calling their shot.