"We do not need to be in a hurry, and we are well positioned to wait for greater clarity," the Fed chief added in a recent speech in New York.
- 'No pressing need' -
Economist Michael Pearce at Oxford Economics said he expects the Fed will not want to "overreact" to early signs that inflation may pick up, or to indications that the economy is weakening more quickly than anticipated.
The Fed has previously kept rates elevated to tamp down inflation. Cutting rates, conversely, typically stimulates economic activity, providing a boost to growth.
"It's a bit of a dilemma for the Fed," Pearce said, as there could be conflicting signals.