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.

Jerome Powell gave a slight hint of possible interest rate cuts in the future as he warned about a gloomier economic outlook, in part due to tariffs, CNN reported. The Federal Reserve Chief talked about the matter in his annual address at Jackson Hole, Wyoming.