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.

Federal Reserve Chair Jerome Powell has signaled that more rate cuts are in the pipeline, though their size and speed will depend on the evolution of the economy.

Jerome H. Powell, chair of the Federal Reserve, said that central bankers will lower rates as much as needed, but have forecast two more quarter-point rate cuts this year.

The Federal Reserve cut its key lending rate by 0.5% on Sept. 18. While it remains to be seen how many more rate cuts will occur, the consensus appears to be additional quarter-point cuts by the end of the year. These cuts are more likely to affect prices on Wall Street than on Main Street.

Powell said two more rate cuts are possible if the economy continues to perform as expected, though they are likely to not be as aggressive as the cut two weeks ago.

The relative strength of the economy means the central bank will take a deliberate policy approach, with gradual rate cuts coming.

Federal Reserve Chair Jerome Powell said the central bank will lower interest rates “over time,” while again emphasizing that the overall US economy remains strong. Powell also reiterated his confidence that inflation will continue moving toward the Fed’s 2% target,

U.S. stocks were poised to close out a solid quarter on a down note, edging lower after Fed Chair Jerome Powell suggested the central bank would likely refrain from extra-large interest-rate cuts if the economy evolves as expected.

By Howard Schneider NASHVILLE, Tennessee (Reuters) -Federal Reserve Chair Jerome Powell indicated on Monday the U.S. central bank would likely stick with quarter-percentage-point interest rate cuts moving forward and was not "in a hurry" after new data boosted confidence in ongoing economic growth and consumer spending.