The Fed chair is speaking at the annual meeting of the National Association for Business Economics in Nashville, Tenn.

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

In the wake of Powell's formal remarks, stocks eased slightly and yields on Treasuries rose. Rate futures traders leaned into bets the Fed will deliver a quarter-percentage-point rate cut rather than a second straight half-percentage-point cut in November.

Why it matters: For now it looks likely that the U.S. economy could avoid a recession as inflation plunges and the labor market remains healthy. Powell signaled that lower rates could help guarantee a so-called "soft landing," but cautioned that some risks remain.

Federal Reserve Chair Jerome Powell says the economy is in solid shape. “We intend to use our tools to keep it there,” he adds.

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 said the central bank will lower interest rates “over time,” while again emphasizing that the overall economy remains on solid footing.

Jerome H. Powell, chair of the Federal Reserve, said that inflation is down and unemployment up “significantly,” and that rates will move down “over time.”

Federal Reserve Chair Jerome Powell said the central bank would continue to reduce interest rates from a two-decade high to help support hiring and preserve a growing economy. To watch Powell live, click here.