Brian Mulberry, senior portfolio manager at Zacks Investment Management, noted that Powell’s stance seemed more aligned with that of Fed Governor Christopher Waller, who dissented from the Federal Open Market Committee's “wait-and-see” approach to holding rates steady last month.

Jerome H. Powell said the “balance of risks” across the economy had started to shift, raising the odds the central bank lowers borrowing costs at its next meeting in September.

For months, Jerome Powell largely ignored President Donald Trump’s constant hectoring that he reduce borrowing costs. On Friday, he changed course, saying the Fed could lower interest rates as soon as its next meeting in September.