Federal Reserve chairman Jerome Powell signaled a possible interest rate cut in the months to come, sending stocks sharply higher.

While Powell’s highly anticipated speech in Jackson Hole started off acknowledging the resilience of the U.S. economy, despite the adminstration’s fluctuating trade policies, the Fed chair noted that “the balance of risks appear to be shifting.”

Federal Reserve Chair Jerome Powell on Friday pointed to a possible interest rate cut at the U.S. central bank's meeting next month, but stopped short of committing to it, in remarks acknowledging both the growing risks to the job market and ongoing threat of higher inflation.