The Fed has two main objectives: maintain maximum employment and contain inflation. Although one single data point is never decisive, when inflation is high, the Fed generally raises interest rates to slow demand. When the unemployment rate is high, the Fed often lowers interest rates to stimulate consumer activity.

A strong economy is giving Federal Reserve officials room to move “carefully” as they lower interest rates, the central bank chair said.

This reality forced Federal Reserve Chairman Jerome Powell to concede the possibility Thursday that the central bank may cut key rates at a slower pace than many expected. Powell disclosed the possibility during an appearance in Dallas, Tex., sponsored by the Federal Reserve Bank of Dallas and two local groups.