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

World shares were mixed on Monday after the head of the Federal Reserve hinted that cuts to interest rates may be on the way. European markets opened lower, with Germany's DAX down 0.2% at 24,305.67,

Major brokerages, including Barclays, BNP Paribas and Deutsche Bank, now expect a 25-basis-point U.S. Federal Reserve rate cut in September following Chair Jerome Powell's shift in tone at Jackson Hole toward rising risks in the labor market.

President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said.

U.S. President Donald Trump's attacks on Federal Reserve policymakers are emerging as the biggest threat in decades to central bank independence, which is widely seen as key to keeping down inflation and maintaining stability in the global financial system.