Powell says the Fed doesn't need to be 'in a hurry' to reduce interest rates

cnbc.com:

Federal Reserve Chair Jerome Powell said Thursday that strong U.S. economic growth will allow policymakers to take their time in deciding how far and how fast to lower interest rates.

«The economy is not sending any signals that we need to be in a hurry to lower rates,» Powell said in remarks for a speech to business leaders in Dallas. «The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.»

( Watch Powell's remarkets live here .)

In an upbeat assessment of current conditions, the central bank leader called domestic growth «by far the best of any major economy in the world.»

Specifically, he said the labor market is holding up well despite disappointing job growth in October that he largely attributed to storm damage in the Southeast and labor strikes. Nonfarm payrolls increased by just 12,000 for the period.

Powell noted that the unemployment rate has been rising but has flattened out in recent months and remains low by historical standards.

On the question of inflation, he cited progress that has been «broad based,» noting that Fed officials expect it to continue to drift back toward the central bank's 2% goal. Inflation data this week, however, showed a slight uptick in both consumer and producer prices, with 12-month rates pulling further away from the Fed mandate.

Still, Powell said the two indexes are indicating inflation by the Fed's preferred measure at 2.3% in October, or 2.8% excluding food and energy.

«Inflation is running much closer to our 2 percent longer-run goal, but it is not there yet. We are committed to finishing the job,» said Powell, who noted that getting there could be «on a sometimes-bumpy path.»

Powell's cautious view on rate cuts sent