If inflation starts climbing again after a rate cut, “the Fed will have to reverse course—and in the worst case, start hiking again,” Slok said.

Powell delivered the guidance in a highly anticipated speech on Friday at the central bank's annual symposium in Jackson Hole, WY.

Federal Reserve Chair Jerome Powell's speech at Jackson Hole on Friday morning was setting off a broad rally on Wall Street, but it’s been small-cap stocks shining the brightest. Small-cap stocks, as measured by the benchmark Russell 2000 index,

The symposium comes amid a confusing economic picture and pressure on several members of the top committee to quit from President Trump.