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.

Trump ratcheted up his pressure campaign this week, calling on Fed Governor Lisa Cook to resign after a Trump administration official alleged that she had committed mortgage fraud. Cook rebuked the push for her to quit, saying she has “no intention of being bullied to step down from my position because of some questions raised in a tweet.”

Federal Reserve Chair Jerome Powell's speech at the annual Jackson Hole Economic Policy Symposium went better than expected.

Cook, the first Black woman to serve on the Fed board, said she had "no intention of being bullied to step down" after Trump called for her resignation.

U.S. President Donald Trump on Friday said he would fire Federal Reserve Governor Lisa Cook if she doesn't resign, intensifying his effort to gain influence over the U.S. central bank. "I'll fire her if she doesn't resign,