Powells comments last on schedule before meeting
Quarterpoint cut still expected
Jobs, inflation data still to come

NEW YORK, Reuters U.S. Federal Reserve Chair Jerome Powell on Wednesday said the economy is stronger now than the central bank had expected in September when it began reducing interest rates, and appeared to signal his support for a slower pace of interestrate cuts ahead.

The U.S. economy is in very good shape and theres no reason for that not to continue …the downside risks appear to be less in the labor market, growth is definitely stronger than we thought, and inflation has come in a little higher, Powell said at a New York Times event. So the good news is that we can afford to be a little more cautious as we try to find neutral.

His remarks during a wideranging halfhour interview that touched only lightly on monetary policy and the economy are likely his last before the Dec. 1718 policy meeting, as the quiet period when Fed officials refrain from speaking about monetary policy ahead of a meeting starts on Saturday.

Indepth comments by some of Powell39;s key colleagues this week have pointed in the direction of a third straight interestrate cut, with Governor Christopher Waller saying on Monday he was leaning toward a reduction even as others decline to precommit to that outcome.

Powell39;s own remarks on Wednesday appear to align him with that more cautious bloc of policymakers and largely echoed his last public appearance in midNovember,…