Markets rose Friday after Federal Reserve Chair Jerome Powell appeared to open the door to lowering interest rates, something analysts say would help boost overall activity in the U.S. economy but at the risk of spurring inflation.

Jerome Powell said the labor market might be softening enough to rein in inflation that is being pushed up by tariffs .

Federal Reserve Chair Jerome Powell on Friday signaled a possible interest rate cut at the U.S. central bank's meeting next month, saying that risks to the job market were rising but also noting inflation remained a threat and that a decision wasn't set in stone.

Stocks surged on Friday and the Dow was set to close at its first record high of the year after Federal Reserve Chair Jerome Powell signaled interest rate cuts could be on the way.

Federal Reserve Chairman Jerome Powell is delivering a high-profile speech in Jackson Hole, Wyoming, as he faces major pressure from President Donald Trump to lower interest rates. He’s scheduled to begin speaking at 10 a.

While Trump frames the issue as consumer pain, Wharton’s Joao Gomes told Fortune that cheaper borrowing would also ease interest payments on the government’s $37 trillion debt burden—likely a central motivation.