DALLAS – Federal Reserve Chairman Jerome Powell told business leaders in Dallas that the central bank would not rush to cut rates.

The last economic report shows inflation increased slightly in October.

Rising costs were a big topic Powell spoke about Thursday at a Dallas Regional Chamber event.

Powell said the economy is moving in a positive direction, but the Fed has fallen short of its goal.

“It seems like we’re exactly where we need to be. I feel like the U.S. economy is doing very well and the policy is in a good place,” he told the audience.

Despite this sentiment, Powell says policymakers will exercise caution before making any rate cuts.

“The economy is not sending any signals that we need to rush to lower rates,” he said. “The strength we are seeing in the economy right now gives us the ability to approach our decisions with caution.”

Powell says there are plenty of positives to point out.

“The labor force has grown rapidly and productivity has increased more quickly over the past five years than in the two decades before the pandemic,” he said.

Powell also expects the housing market to continue to fluctuate, but he believes the economy is not signaling the need to drastically lower interest rates.

“Our goal has been to bring inflation back to our target without a painful rise in unemployment. Although the task is not finished, we have made a lot of progress toward that result,” Powell said.

The price of everyday expenses continues to be a priority for Americans, influencing how many people vote in elections.

President-elect Donald Trump has pledged to raise taxes on foreign imports to boost domestic production. Economists warn that businesses will pass these costs on to consumers.

Powell was cautious about whether this might impact the economy one way or another.

“The answer is not obvious until we see the actual policy and even then it is not obvious. I think we reserve judgment until we actually know what we let’s talk,” he said.

Even though Powell’s role is not political, everything in Washington is political.

Powell made headlines last week when asked if he would resign under pressure from President-elect Trump.

He said no.

His term as chairman ends in 2026, but his term on the Fed Board of Governors continues until early 2028.

“I will just say that I will certainly serve until the end of my term as president, that’s all I’ve decided and all I’m thinking about,” Powell said.

Powell says the Fed is focused on achieving its 2 percent inflation target.