Fed Chair Jerome Powell signals possible rate cut, sending stocks sharply higher

Federal Reserve Chairman Jerome Powell signaled a possible cut in interest rates in the near future, sending stocks soaring on Friday.

Speaking to a gathering of economists and central bankers in Jackson Hole, Wyo., Powell said current economic conditions, including a marked slowdown in job growth, suggest a downward adjustment in the Fed's benchmark rate may be warranted.

Powell stopped short of promising a rate cut at the next Fed meeting in September, saying he and his colleagues will continue to monitor incoming data on both inflation and job growth.

But the Fed chairman's tone was enough to rally investors, who were already betting the central bank would lower its benchmark rate when policymakers gather in three-and-a-half weeks.

The Dow Jones Industrial Average jumped nearly 900