Federal Reserve Chair Jay Powell said Monday the central bank intends to do what it takes to keep the economy humming while avoiding recession.

"Overall, the economy is in solid shape; we intend to use our tools to keep it there," Powell said in a speech before the National Association for Business Economics in Nashville, Tenn.

"We remain resolute in our commitment to our maximum-employment and price-stability mandates."

Powell said if the economy unfolds as expected, the Fed will cut interest rates "over time toward a more neutral stance." But the Fed chair stressed that the central bank is not on a preset course and decisions will be made meeting by meeting.

Powell’s comments come after the central bank slashed its benchmark interest rate by 50 basis points at its last policy meeting on September 18, marking the first rate cut in more than four years.

The consensus among Fed officials outlined at that meeting is for two more 25 basis point rate cuts in 2024.

Powell on Monday reiterated a point he made immediately following the Sept. 18 meeting, saying the Fed’s decision to slash rates by 50 basis points instead of 25 reflected growing confidence that officials can maintain strength in the job market and the economy while inflation continues to drop.

"We have made a good deal of progress toward that outcome," he added Monday.

Powell noted that inflation’s drop has been broad based, and recent data indicate further progress toward a sustained return to the Fed’s 2% goal. The Fed, he said, does not need to see further cooling in job market to achieve 2% inflation.

With inflation seemingly on track, it’s the job market that is now in full focus for Powell and many of his colleagues.

While the central bank chair acknowledged the job market has cooled, Powell characterized it as “solid” and noted that layoffs are low, the unemployment rate is within a range of what’s considered full employment, and the labor force participation rate of individuals aged 25 to 54 — so-called prime age workers —is near an historic high.

If the jobs report due out Friday shows more weakening, that could cause the central bank to consider cutting rates more deeply at the next meeting in November.

Atlanta Federal Reserve President Raphael Bostic told Reuters on Monday he would be open to another 50 basis point rate cut at the Fed’s meeting in November if upcoming data show job growth slowing faster than expected.

Bostic said he previously penciled in just one more 25 basis point rate cut this year.

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