Powell states that the Fed has no need to act quickly in lowering interest rates.

• Jerome Powell, the Federal Reserve Chairman, stated on Thursday that the US economy's robust growth will enable policymakers to make a gradual decision on lowering interest rates.
• In Dallas, Powell stated that the economy is not giving any indications that we need to act quickly to reduce rates.

Jerome Powell, the Federal Reserve Chairman, stated on Thursday that the US economy's robust growth will enable policymakers to make a gradual decision on lowering interest rates.

"Powell stated in a speech to business leaders in Dallas that the economy is not indicating any urgency to lower rates, as the current strength allows for cautious decision-making."

(Watch Powell's remarkets live here.)

The central bank leader stated that domestic growth is the best among major economies globally.

Despite disappointing job growth in October, largely due to storm damage in the Southeast and labor strikes, the labor market is holding up well, with nonfarm payrolls increasing by just 12,000 for the period.

Recently, the unemployment rate has been increasing, but it has leveled off in recent months, and it is still low compared to historical norms.

He mentioned that the Fed anticipates inflation to decrease towards its 2% target, despite recent inflation data showing a slight increase in both consumer and producer prices, with 12-month rates diverging from the Fed mandate.

The Fed's preferred inflation measure was at 2.3% in October, or 2.8% when excluding food and energy, according to Powell.

""Although inflation is currently near our 2 percent target, it has not yet been achieved. However, we remain committed to achieving our goal, which may involve navigating a bumpy path," said Powell."

Treasury yields rose as Powell's cautious stance on rate cuts lowered stock prices and traders reduced their expectations for a December rate cut.

The Federal Open Market Committee reduced the central bank's benchmark borrowing rate by a quarter percentage point, bringing it within the range of 4.5%-4.75%, after a half-point cut in September.

Powell has stated that the moves are a shift in monetary policy from solely targeting inflation suppression to a more balanced approach that supports the labor market. Despite this, markets anticipate the Fed to make another quarter-point cut in December and potentially more cuts in 2025.

Powell was evasive when asked to give his own forecast. The Fed aims to set its key rate at a neutral level that neither stimulates nor hinders growth, but is uncertain about the final outcome.

"We are optimistic that by adjusting our policy position, we can sustain a strong economy and labor market, with inflation gradually decreasing to 2 percent," he stated. "Our policy stance is being gradually adjusted to a more neutral position. However, the journey to achieve this is not predetermined."

The Fed has been allowing bond holdings to roll off its balance sheet each month, with no indication of when the process will end.