After commentary from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium, signaling an interest rate cut will come at the Fed's September meeting, will the economy adjust accordingly after rates were held so high for an extended period of time?

Former Cleveland Fed President Loretta Mester sits down with Yahoo Finance Fed reporter Jennifer Schonberger to discuss Powell's speech and whether or not the economy can adapt quickly without major impacts.

Mester argues the central bank will still have to remain on its toes to adjust for any potential headwinds: "That's what you have to be attuned to. And you have to be viewing other scenarios that are possibilities. There could be shocks coming that we're not anticipating. There are many things that can happen in an economy."

She believes the Fed has "a good shot" of pulling off a soft landing scenario, but officials have to "keep [themselves] in a position so that [they] can adjust for the risks that may happen."

Watch Federal Reserve Chair Jerome Powell's full speech here.

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This post was written by Nicholas Jacobino