Powell delivered the guidance in a highly anticipated speech on Friday at the central bank's annual symposium in Jackson Hole, WY.

Fed Chair Jerome Powell signals the first rate cut could come next month. On Way Too Early, Courtenay Brown breaks down why Wall Street cheered — and why some see a red flag.

Major brokerages, including Barclays, BNP Paribas and Deutsche Bank, now expect a 25-basis-point U.S. Federal Reserve rate cut in September following Chair Jerome Powell's shift in tone at Jackson Hole toward rising risks in the labor market.