The Dow Jones Industrial Average rose 17.15 points, or 0.04%, to end at 42,330.15, a record closing high. It is the index's 33rd record close of this year. The Dow rose 3211.29 points, or 8.21%, in the third quarter.

"Overall, the economy is in solid shape," Powell said in his prepared remarks on Monday. "We intend to use our tools to keep it there."

The S&P 500 sputtered to a record high close on Monday, rebounding from a brief setback after Federal Reserve Chair Jerome Powell said the U.S. central bank is in no hurry to implement further interest rate cuts.

Federal Reserve Chair Jerome Powell said the 50-basis-point cut in the central bank’s policy rate earlier this month was a sign of confidence in the economy and the labor market.

GDI is an alternate measure of economic growth, similar to gross domestic product, but with income rather than output as the yardstick. A gap between the two led Fed officials to worry that output might be weaker than thought, but the two converged when the estimate of GDI was increased.

Federal Reserve Chair Jerome Powell on Monday said the U.S. economy is in "solid shape" and that more interest rate cuts can continue if the economy continues to evolve as expected.