The Fed may need to cut rates at its next meeting due to growing risks to the economy, including some “unusual” behavior in the job market that could become a cause for concern, Fed Chair Jerome Powell said Friday.

In his final speech at the Federal Reserve’s summer retreat, Chairman Jerome Powell said the changing economic landscape likely will bring lower interest rates.

Bond-market participants have been holding out hope for multiple 2025 interest-rate cuts by the Federal Reserve, but those calls will be put to the test by Chair Jerome Powell's upcoming Jackson Hole speech.