US Federal Reserve Chair Jerome Powell left the door open to interest rate cuts in a keenly watched speech Friday, balancing risks to the economy as President Donald Trump intensifies pressure on the central bank.

Last year, the Fed chair used his keynote speech at the Jackson Hole Economic Policy Symposium to indicate the time had come for interest rate cuts. This time, however, the picture is murkier.

Powell faces constant attacks from Trump -- who is aggressively pushing the independent bank to slash rates -- alongside mixed economic data leading him towards a cautious approach.

Powell warned Friday that the risks of higher inflation and a weakening jobs market add up to a "challenging situation."

"Downside risks to employment are rising," Powell said in his speech, warning that the

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