Barclays and BNP Paribas expect the U.S. Federal Reserve to cut interest rates in September, after Chair Jerome Powell signaled a shift toward an easing bias in a speech at Jackson Hole, the brokerages said in separate notes on Friday.

An interest-rate cut by the Federal Reserve in September is likely but not certain after the central bank's chair Jerome Powell cleared a path to a reduction in a speech on Friday, Barclays economists said in a note.