Wall Street rallied on Friday following comments by Federal Reserve Chair Jerome Powell, who said “the time has come” to begin cutting interest rates.

Stock indexes surged with the S&P 500 index nearing a record high, according to Reuters. The Associated Press (AP) reported that the S&P 500 was 1 percent higher after Powell’s remarks, while the Dow Jones Industrial Average was up 305 points—0.7 percent—as of 10:05 a.m. ET. The Nasdaq composite was also up, coming it at 1.4 percent higher.

The Federal Reserve began increasing interest rates more than two years ago in an effort to curb inflation. The move was designed to slow the economy by making borrowing expensive for companies and households.

Jerome Powell speaks in Washington DC
Federal Reserve Chair Jerome Powell participates in a conversation with Economic Club of Washington, D.C., on July 15, 2024. On Friday, Powell signaled the Fed will soon begin cutting interest rates, which resulted in a…


AP Photo/Manuel Balce Ceneta, File

During a Friday speech at the Fed’s annual economic conference in Jackson Hole, Wyoming, Powell did not say how large rate cuts would be or when they would begin, but analysts expect the Fed will announce a quarter-point cut in its benchmark rate when it meets next month.

“The time has come for policy to adjust,” Powell said in his Jackson Hole speech. “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 a breaking story and will be updated as more information becomes available.