WASHINGTON —

Federal Reserve Chairman Jerome Powell signaled that the central bank might lower interest rates soon, which could reduce monthly credit card payments and facilitate borrowing for cars and homes, but he warned of economic challenges ahead.

"In the near term, risks to inflation are tilted to the upside and risks to employment, to the downside. A challenging situation," Powell said.

Powell's comments reflect concerns about a weakening labor market, evidenced by three consecutive poor jobs reports. The Federal Reserve may need to lower interest rates to address these issues, but doing so could exacerbate inflation by making borrowing easier. Powell also noted that tariffs are already contributing to rising prices, and he fears this trend may continue.

“The effects of tariffs

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