Jerome Powell, the Federal Reserve chair, is managing a high-stakes balancing act as he grapples with a cooling labor market, rising inflation and White House pressure to cut interest rates.

Jerome Powell, the Federal Reserve chair, is managing a high-stakes balancing act as he grapples with a cooling labor market, rising inflation and White House pressure to cut interest rates.

The Fed unveiled a strategy five years ago for worries that the economy outgrew. Now, it will formally reset.

JACKSON HOLE, Wyoming — Federal Reserve Chair Jerome H. Powell said on Friday that a slowing job market “may warrant” interest rate cuts in the future, but he also warned that President Donald Trump’s trade policies still threaten to push inflation higher.

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.