10:19 AM EST, 02/11/2025 (MT Newswires) -- Federal Reserve Chairman Jerome Powell said Wednesday in prepared remarks to the Senate Banking Committee that the Federal Open Market Committee does not need to rush to lower rates, repeating language from other Fed officials over the last week.

"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. "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."

Powell said that it was "appropriate" to adjust policy due to the progress seen on inflation and the cooling of the labor market. The FOMC will continue to monitor economic data and conditions to determine how to adjust policy, with attention to both sides of the dual mandate, Powell said, adding that policy is "well positioned" to handle risks and uncertainties.

"As the economy evolves, we will adjust our policy stance in a manner that best promotes our maximum-employment and price-stability goals," Powell said. "If the economy remains strong and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer. If the labor market were to weaken unexpectedly or inflation were to fall more quickly than anticipated, we can ease policy accordingly."

Powell noted that the FOMC will undergo a review of monetary policy strategies and tools this year, but repeated that the FOMC's 2% longer-term inflation goal is not going to be considered for a change, likely a topic of discussion during Powell's testimony.