03:01 PM EST, 12/04/2024 (MT Newswires) -- Federal Reserve Chairman Jerome Powell (voter) said 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 rate on the path down to the neutral rate, noting that economic growth has been stronger than expected since September.

Powell said that the FOMC cannot make decisions based on the expected implication of tariffs until more details are known.

The Fed Beige Book showed that the US economy rose slightly since the last Beige Book report, with modest growth in some areas and slightly declined activity in others. Consumer spending was stable, while capital spending declined in some areas. Employment was flat or up slightly, with subdued hiring and slower wage growth. Prices rose only modestly with less pass-through of costs to consumers.

Recent comments of note:

(Dec. 3) Chicago Fed President Austan Goolsbee (nonvoter) said there is uncertainty in economic outlook that will make timing monetary policy easing more difficult, but added that it is likely that rates will continue to fall "a fair amount" over the next year. Goolsbee did not comment on the likelihood of a rate reduction at the next meeting on Dec. 17-18.

(Dec. 3) Fed Governor Adriana Kugler (voter) repeated that monetary policy is not on a preset course and that decisions are made on a meeting-by-meeting basis based on incoming data, the outlook and the balance of risks. Kugler added that she continues to monitor for incoming risks and negative supply shocks and that monetary policy is well positioned to deal with any surprises.

(Dec. 2) New York Fed President John Williams (voter) said that he expects interest rates to continue to decline but repeated that the timing and pace of rate reductions will depend on the incoming data.

(Dec. 2) Fed Governor Christopher Waller (voter) said that he is leaning toward supporting another rate reduction at the December FOMC meeting but said that the incoming data on employment and inflation will help determine whether to lower interest rates further or to hold them steady at the upcoming meeting.

(Dec. 2) Atlanta Fed President Raphael Bostic (voter) said that the US economy is on a good footing, but cautioned that uncertainties remain and that a faster than expected slowdown in labor market strength could mean a faster easing of monetary policy is required.