Jerome H. Powell said the “balance of risks” across the economy had started to shift, raising the odds the central bank lowers borrowing costs at its next meeting in September.

Now that Federal Reserve Chair Jerome Powell has signaled that the central bank could soon cut its key interest rate, he faces a new challenge: how to do it without seeming to cave to the White House's demands.

On Aug.22, Federal Reserve Chair Jerome H. Powell said a job market “may warrant” interest rate cuts in the future at an economic conference in Jackson Hole, Wyoming.