Federal Reserve Chair Jerome Powell said Thursday that the economy is in a good place, with inflation on a sustainable path back to the central bank’s 2% target, and that he expects inflation to continue to come down on a “sometimes bumpy” path.

Traders pared back their expectations for an interest-rate cut in December and policy-sensitive US yields jumped after Federal Reserve Chair Jerome Powell said economic resilience gives officials room to ease more carefully.

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