Federal Reserve Chair Jerome Powell signaled apossible interest rate cut in September, prompting a rally across financialmarkets on Friday. His comments at the Kansas City Fed’s annual Jackson Holesymposium struck a more dovish tone than investors had anticipated.Powell Flags Employment RisksPowell said the balance of risks is shifting andwarned of potential weakness in the labor market. “Downside risks to employment are rising,” he said.“If those risks materialize, they can do so quickly in the form of sharplyhigher layoffs and rising unemployment.” Markets had expected Powell to stick to a firmer line.Ahead of his speech, traders saw only a 69% chance of a September rate cut.Following his remarks, those odds surged to nearly 90%, according to CMEFedWatch.Bitcoin and Equities ReboundFollowing Powell's remarks, Bitcoin rose about 4%, tradingat $116,834 at the time of publication. The cryptocurrency had fallen nearly 10% over the past week from arecord high above $124,000 as easing expectations faded. Ether also recovered,gaining almost 8% after a 12% drop earlier in the week.U.S. equities moved higher, with the Nasdaq reversingpart of its recent 3% decline. Treasury yields eased, with the 10-year fallingsix basis points to 4.27%. The dollar index slipped 0.5% while gold added 0.6%.Volatile Week for MarketsPowell’s commentsquickly shifted sentiment. With the Fed now seen as more likely to move inSeptember, investors are preparing for another round of volatility as economicdata and central bank signals guide the weeks ahead.This article was written by Jared Kirui at www.financemagnates.com.