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.

Minutes after the speech, investors pegged the chances of a quarter-point interest rate cut at 91%, up from a 75% chance assessed one day earlier, according to CME FedWatch Tool, a measure of market sentiment. Despite the market's positive reaction to Powell's speech, the Fed chair voiced a note of caution for the outlook for the U.S. economy.

Fed Chair Jerome Powell gives his final speech in Jackson Hole as a debate over inflation and interest rate cuts rages on.

If inflation starts climbing again after a rate cut, “the Fed will have to reverse course — and in the worst case, start hiking again,” Slok said.

Fed Chair Jerome Powell's address on Friday and Nvidia earnings after the close on Wednesday may hold the keys as to whether the bull market can continue. "In the near-term, if Chair Powell can give a market-friendly speech and NVDA can meet,

The stock market is heading into a catalyst-filled week as Fed Chair Jerome Powell gets ready to speak at Jackson Hole and big retailers report earnings.