"If the strong growth in income and jobs continues, further gradual increases in the target range for the federal funds rate is likely to be appropriate", Powell said here at the central bankers' annual gathering, which is organised by the Federal Reserve Bank of Kansas City.
"We can afford to wait and see and inflation does start to move up, well, we can move up", he added.
However, Trump said he disagreed with the central bank's policy of raising rates because it could hurt the economy, and promised to maintain his criticism if Powell kept increasing the cost of borrowing.
Powell noted that the economy remained strong and anyone who wanted a job could find one.
"Expressions of angst about higher interest rates are not unique to this administration", she said in a separate interview with CNBC. But it also criticizes preferences cited by some Fed officials who have urged moving more slowly to raise interest rates, seeking more evidence of a rebound in inflation before doing so.
On Wall Street, the Dow Jones Industrial Average rose 139.04 points, or 0.54 percent, to 25,796.02.
U.S. Federal Reserve Chairman Jerome Powell said on August 24 that the economy is strong and there was no clear sign of inflation moving above the central bank's 2 percent target.
Both separately dismissed any notion that Trump's critical comments about the Fed's rate increases would factor into their policies.
Powell has likely put a floor under gold, that is, the recent low of $1,160 is unlikely to be breached in the near-term unless the inflation readings show signs that the economy is overheating, in which case the Fed may be compelled to tighten the policy at a faster pace and lift rates above the neutral level. It is widely expected to hike rates again when it next meets in September. While the trade conflict between Washington and Beijing darkens the economic outlook, the supply versus demand position in oil markets remains relatively tight -especially because of the looming USA sanctions against Iran.
Powell says the Fed expects those positive economic trends to continue, especially with the added stimulus of last December's big tax cut.
What is inflation in today's economy?
"Overall, his speech did not signal any change in policy", Michael Pearce, senior USA economist at Capital Economics, wrote in a note.
"Jerome Powell hit the dollar with a fairly dovish set of remarks at Jackson Hole", said Neil Wilson of Markets.com said in a note to clients.
To emphasize the Fed's attention to inflation, Powell borrowed a line that European Central Bank President Mario Draghi used in July 2012 to preserve the euro.
The Jackson Hole speech follows closely behind President Trump's criticism of the Fed for its continued tightening of USA monetary policy ever since Powell, who was nominated for the role by Trump, took the helm in February. He said there is also much uncertainty over the "neutral" rate of inflation - the point at which the Fed's policy rate is neither stimulating economic growth or holding it back. The chairman reminded his audience of central bankers and economists that if the Fed stubbornly tried to defend a previous estimate for full employment - a term economists refer to as U-star - the cost would be 1.6 million jobs.
Usually when I arrive at a new club, I have problems for two-three months, I think it is normal". "So it's up to him only". On the subject of Loftus-Cheek, Sarri added: "I am not able to promise anything to anybody". "For now, I don't miss him.
In a separate development, the NY attorney general is moving to open a state criminal tax investigation into Cohen. Cohen entered a plea deal over tax and bank fraud, as well as campaign finance violations, the previous day.
Victor is now asking to be sent to Texas, where she can be near family and receive treatment for an eating disorder. Winner's defense attorneys said they were grateful the judge agreed to the sentence recommended by prosecutors.
Daredevil and Justice League actor Ben Affleck and Elektra alum Jennifer Garner have reportedly settled their divorce . The publication states the final agreement will be signed and filed in a court of law after Affleck gets out of rehab.
Alvaro Morata has said he wants to score more than 30 goals this season but will accept fewer if Chelsea win the Premier League . On Loftus-Cheek, Sarri also remarked: "I have spoken with him twice this week, after I spoke with the club".
Police say his McLaren sports vehicle was driving at high speed in the wrong direction near San Diego. Two other people in the Hyundai - a 43-year-old mother and her 12-year-old daughter - were killed.
The accounts spent about $12,000 to advertise through Facebook and Instagram using a variety of currencies, Facebook said. A tip from cybersecurity firm FireEye led company officials to investigate a group called Liberty Front Press .
If Australia changes prime minister on Friday it will be the sixth leader in less than a decade and none have served a full term. Other favorites include Treasurer Scott Morrison and the only declared challenger Peter Dutton , a former cabinet minister.
Although Johnson later corrected himself, Iranian state television highlighted his comments as justification for imprisoning her. Ratcliffe and his supporters have held multiple protests and vigils in London to ask for her release in the past two years.
Aubameyang himself suggested he would be more than happy to make space for the Frenchman on the pitch being moved out wide. An Alexandre Lacazette-Pierre-Emerick Aubamayang strike partnership could wreak havoc with the shaky new Hammers defence.
"Manchester United" has no plans to sack Mourinho
Wolves are more formidable at home and we tip them to score in this game too. "I expect the tempo of the game to be very fast". He had famously once called him a "sh*t bag" and blamed him from taking Pogba away from Manchester United to Juventus.