In the highly anticipated Jackson Hole speech, Fed Chair Jerome Powell noted that the three weeks since July FOMC meeting “have been eventful”. There were new tariffs on Chinese imports, further evidence in global slowdown notably in Germany and China. Also, there were geopolitical events including “growing possibility of a hard Brexit, rising tensions in Hong Kong, and the dissolution of the Italian government.”

Though, US economy has “continued to perform well overall, driven by consumer spending”. Job creation slowed but is “still above overall labor force growth”. Inflation seems to be “moving up closer to 2%. Powell pledged, “based on our assessment of the implications of these developments, we will act as appropriate.

Dollar dips mildly after the release but overall, downside is limited for the moment.

Powell’s full speech here.

St. Louis Fed President James Bullard, a known dove, told CNBC that “we should get lower here,” on interest rates. He added “The yield curve is inverted. We’ve got one of the higher rates on the whole yield curve. That is not a good place to be”.

Bullard also asked “How much risk are we facing from the fact that we’ve got a global manufacturing contraction going on and possibly more to come?”. And, “I’d like to take out more insurance against that downside risk.”

Cleveland Fed President Loretta Mester said she’s approach next month’s FOMC meeting with an open mind. She added if the economy continues where it is, I would probably say we should keep things the way they are.” Though, she is “very attuned to the downside risks to this economy and I want to make sure we’re always focused on our dual-mandate goals.”

Dallas Fed President Robert Kaplan said he’d like to “avoid having to take further action” on interest rates. Though, he’s going to “have an open mind about taking action over the next number of months if we need to.”

He added “even though the consumer is very strong and a key underpinning to the economy, manufacturing sector is weak and probably weakening and global growth decelerating is probably finding its way to seep into the U.S. economy.” There are “downside” risks to Fed’s GDP growth forecast of 2% this year.

Regarding yield curve inversion, Kaplan said “I’m more focused on the fact that the whole curve has moved down over the last three and a half months and the Fed funds rate at two to two and a quarter is now above every rate along the curve which to me is a bit of a reality check that says it’s possible our monetary policy stays a little tighter than I would have thought three or four months ago.”

Philadelphia Fed President Patrick Harker told CNBC “No. Not right now”, when asked if he sees a case for further rate cut. He explained, “the labor markets are strong, inflation is moving up slowly — but with the last CPI print, it was a good print,”

On the current interest rate, he said: “We’re roughly where neutral is. It’s hard to know exactly where neutral is, but I think we’re roughly where neutral is right now. And I think we should stay here for a while and see how things play out.”

Kansas City Fed President Esther George, who dissented the rate cut at July FOMC meeting, repeated her stance that the rate cut “wasn’t required”. She told CNBC that “with this very low unemployment rate, with wages rising, with the inflation rate staying close to the Fed’s target, I think we’re in a good place relative to the mandates that we’re asked to achieve.”

Though, she admitted that risks are tilted to the downside. She noted, “as you look at global growth weakening and as you look at the amount of uncertainty associated with some of these trade issues, I think both of those are weighing on the outlook. Whether they spill over in a way that we see in the real economy is what I’m watching for.”

Separately, she told Bloomberg TV that “We’re at a sort of equilibrium right now and I’d be happy to leave rates here absent seeing either some weakness or some strengthening, some kind of upside risk that would cause me to think rates should be somewhere else.”