Wall Street rallied on Friday morning after Federal Reserve Chair Jerome Powell's signaled a rate cut could be on the horizon.

Bond investors are heading into Friday’s much-anticipated Jerome Powell speech largely expecting the Federal Reserve chair will indicate policymakers will start cutting interest rates next month.

The Fed’s annual forum at Jackson Hole has long been a must-watch event for Wall Street, but this year’s meeting brings extra scrutiny.

Gold ticked up on Wednesday but hovered near three-week lows, as investors looked towards the Federal Reserve's July meeting minutes and the Jackson Hole, Wyoming symposium of central bankers this week for cues on further rate cuts.

Los banqueros centrales reunidos esta semana en Jackson Hole, Wyoming, para la conferencia anual de la Reserva Federal están dispuestos a ir más allá de intercambiar documentos de investigación y disfrutar de las vistas de las montañas: han venido a defender a Jerome Powell.

Chair Jerome Powell in remarks on Friday is expected to unveil the Fed’s new policy framework — the strategy it’ll use to achieve its inflation and employment goals. Powell may also drop some hints about the Fed’s thinking ahead of its September policy meeting.

By Howard Schneider WASHINGTON (Reuters) -Fed Chair Jerome Powell used the central bank's annual Wyoming research conference to promise inflation-fighting rigor when it was needed in 2022, then last year he came to the defense of the job market with promises of lower interest rates when the unemployment rate seemed on a steady rise.