Federal Reserve Chair Jerome Powell solidified that the time for rate cuts has arrived during his speech at the Jackson Hole Economic Symposium on Friday.

Former Fed Vice Chair Alan Blinder joins Yahoo Finance Fed reporter Jennifer Schonberger from the Kansas City Fed's Economic Symposium to discuss his outlook on the Fed's next moves.

Blinder, now a Princeton University professor of economics and public affairs, suggests that while something "unusual" could happen in the four weeks leading up to the next Fed meeting, he anticipates a 25-basis-point cut in September if conditions remain stable.

Addressing the timing of rate cuts, Blinder notes, "Yeah, I think they're a little behind the curve, but we don't want to exaggerate this too much," indicating that the Fed still has an opportunity to correct course.

Blinder cautions that the labor market can't cool "too much more" without risking a recession. While unemployment has been slowly increasing, he warns, "you don't want to keep that up for very long."

"I think what they're hoping for is that the unemployment rate peak is not very far off, that we're very close to it. In which case, you can move at a deliberate pace and not give off the aura of 'Oh my God, we missed the boat. We better get on the boat quickly before it sails away from us,'" he tells Yahoo Finance.

Looking ahead, Blinder predicts the possibility of three rate cuts materializing before the end of 2024.

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

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This post was written by Angel Smith