Federal Reserve Chairman Jerome Powell walks outside of Jackson Lake Lodge during a break Friday at the Jackson Hole Economic Policy Symposium in Moran, Wyoming. AP

WASHINGTON — 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 .

For months, Powell has largely ignored President Donald Trump's constant hectoring that he reduce borrowing costs. Yet on Friday, in a highly-anticipated speech, Powell suggested that the Fed could take such a step as soon as its next meeting in September.

It will be a fraught decision for the Fed, which must weigh it against persistent inflation and an economy that could also improve in the secon

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