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 on Friday hinted that Fed may cut rates soon but gave no hint on the timing of a move. He suggested the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy.

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.

Investors’ expectations of lower interest rates were reflected in the major stock indexes and lower government bond yields.

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.

Shares of hospitality company Hyatt Hotels (NYSE:H) jumped 5.1% in the afternoon session after comments from Federal Reserve Chair Jerome Powell opened the door to potential interest rate cuts. Powell's comments at the Jackson Hole Economic Policy Symposium suggested that the central bank could begin to cut interest rates,