02:39 PM EST, 12/04/2024 (MT Newswires) -- Federal Reserve Chairman Jerome Powell said Wednesday that the strong US economy means the Federal Open Market Committee can afford to be "a little more cautious" when it comes to lower interest rates on the path down to the neutral rate.

Powell said in his remarks at the New York Times DealBook Summit that the economy is in good shape and acknowledged that there is no reason that that cannot continue.

Economic growth has been stronger than expected since September, Powell noted, giving the FOMC time to consider the appropriate path of policy. Most analysts believe the FOMC will cut its federal funds rate target by 25 basis points at its next meeting on Dec. 17-18, but there some expect that the FOMC could choose this time to pause its rate reductions until the New Year.

Asked about the incoming Trump administration's plans to impose tariffs on imports from other countries, which could be inflationary, Powell said that with so much still unknown about those plans, the FOMC cannot make current policy based only on expectations.

Powell also pushed back on any reduction in the independence of the Fed, saying the freedom from political influence allows the FOMC to make the best policy for the country.