Barclays and BNP Paribas expect the U.S. Federal Reserve to make a 25-basis-point interest rate cut in September, according to notes dated Friday, citing Chair Jerome Powell's shift in tone at Jackson Hole toward rising risks in the labor market.

(Reuters) -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.