Federal Reserve Chair Jerome Powell signaled Friday that it’s time to adjust monetary policy, effectively paving the way for the beginning of interest rate cuts.

Powell refrained from committing to a predetermined path for rate cuts or providing any hints about their size, emphasizing the decision will depend on incoming data.

“My confidence has grown that inflation is on a sustainable path back to 2 percent,” the Fed chair said at the Jackson Hole Symposium.

“The time has come for policy to adjust. 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,” he said.