Jay Powell set the stage for a reduction in borrowing costs but jobs and inflation reports could get in the way

Asian shares have tracked Wall Street's rally after the head of the Federal Reserve hinted that cuts to interest rates may be on the way

Investors are celebrating interest rate cuts that have yet to happen following Federal Reserve chair Jerome Powell's Jackson Hole speech, which opens the door to a September rate reduction. Why it matters: Wall Street may be ignoring risks associated with a quarter-point rate cut next month that could stick around to haunt investors later on.