Jay Powell on Thursday once again reinforced his intention to serve out his term as chair of the Federal. Reserve, while making it clear the central bank is not "in a hurry" to lower interest rates.

When he was asked during an appearance in Dallas under what circumstances he would consider remaining on the Fed's board after his term as chair ends in May 2026, Powell responded, "I'll certainly serve to the end of my chair term and that's really all I've decided and all I'm thinking about."

It was the second time in a week Powell discussed his future under a new presidential administration. Last Thursday, he told reporters he didn’t intend to go anywhere even if President-elect Donald Trump tried to fire or demote Powell.

"Not permitted under the law," the central bank chair said when reporters asked about it.

Today he also offered some new thoughts about monetary policy, saying the Fed can afford to move carefully on rates due to the economy’s strength, and that the Fed would be "watching carefully" to make sure certain inflation measures stay within an acceptable range.

“The economy is not sending any signals that we need to be in a hurry to lower rates,” Powell said. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”

Last week, the Fed cut rates by a quarter percentage point, its second reduction in seven weeks.

Ultimately, Powell reiterated the path of the Fed's policy rate will depend on how the incoming data and the economic outlook evolve.

Inflation, he said, is running closer to the Fed’s 2% goal but isn’t there yet. He said the Fed will be paying close attention to core measures of goods and services inflation, excluding housing, which have fallen over the past two years.

"We expect that these rates will continue to fluctuate in their recent ranges,” he said. “We are watching carefully to be sure that they do."

The path down to the Fed’s goal of 2%, he added, will be “sometimes bumpy.”

October inflation readings out this week have shown little progress toward that target, calling into question how deeply the Fed will cut interest rates in 2025.

On Wednesday, the "core" Consumer Price Index (CPI), which strips out the more volatile costs of food and gas, showed prices increased 3.3% for the third consecutive month during October.

Then, on Thursday, the "core" Producer Price Index (PPI) revealed prices increased by 3.1% in October, up from 2.8% the month prior and above economist expectations for a 3% increase.