Remember the time when money was nearly free? The era of the crypto phenomenon when tech stocks surged, and the average stock experienced double-digit movements? That review memory is starting to come back into focus.  On Friday, at the Jackson Hole Symposium, the hottest finance ticket in North America hosted its main event, which was Jerome Powell. As soon as he was under the spotlight, the words "the time has come" rolled off his tongue, and the market went wild. 

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This was the signal many had been waiting for: indication that interest rates would come down in a month. Federal Reserve Chair Jerome Powell suggested it’s time for the Fed to reduce interest rates, focusing on cooling inflation and the labor market although he did not specify the size of the potential September cut.

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Powell noted the cooling labor market and slowing inflation, noting labor conditions are now less tight than they were in 2019. Markets interpreted Powell's remarks as a relief from a growth-dampening restrictive interest rate, sparking a rally. The Nasdaq and the S&P 500 surged, rising 1.18% and 1.15%, respectively.

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Just as Powell stated that inflation has been tamed but that he is hoping to avoid further cooling in the labor market, the European Central Bank and the Bank of England, indicated that concerns have shifted from inflation to employment. They signaled readiness to reduce interest rates, focusing on economic growth and labor market stability, with potential rate cuts aligned to support cooling labor markets and avoiding excessive unemployment increases.