01:33 PM EST, 02/11/2025 (MT Newswires) -- The Federal Reserve does "not need to be in a hurry" to adjust monetary policy as the economy remains strong, Chair Jerome Powell said Tuesday, reiterating prior remarks that the central bank was in no rush to cut interest rates.

Late last month, the central bank's Federal Open Market Committee kept its benchmark lending rate unchanged following three straight cuts. During a press conference that followed the January meeting, Powell stressed that the central bank could take its time to decide on potential policy adjustments.

"With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance," Powell said Tuesday in prepared remarks to the Senate Committee on Banking, Housing, and Urban Affairs. "We know that reducing policy restraint too fast or too much could hinder progress on inflation. At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment."

In the 12 months through Dec. 31, personal consumption expenditures prices rose 2.6%, while the core metric -- which excludes the volatile food and energy components -- grew 2.8%, both above the FOMC's 2% target, according to Powell.

Government data are expected to show Wednesday that US consumer inflation rose 0.3% sequentially in January following a 0.4% gain the month prior, according to a Bloomberg-compiled consensus. On an annual basis, the US consumer price index is expected to have increased 2.9% last month, unchanged from December's print.

Economic activity has continued to expand at a strong rate, Powell said. "Labor market conditions have cooled from their formerly overheated state and remain solid," he said, adding that the labor market is not a source of substantial inflationary pressures.

On Friday, a survey by the University of Michigan showed that consumer sentiment in February reached its lowest level since last July, while year-ahead inflation expectations hit the highest since November 2023. The survey indicated concerns regarding the Trump administration's tariff policy.

"If the economy remains strong and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer," Powell said. "If the labor market were to weaken unexpectedly or inflation were to fall more quickly than anticipated, we can ease policy accordingly."

The FOMC's 2% longer-run inflation target will be retained and not be a focus of the central bank's periodic review of monetary policy strategy this year, according to Powell.

He is scheduled to appear before the House Financial Services Committee Wednesday.