With healthy hiring and some progress on inflation, Fed official have said that the pace of rate cuts will slow this year.

Policymakers said they “will carefully assess incoming data, the evolving outlook, and the balance of risks” in determining future rate decisions.

Outside of a U.S. President bending norms, the Fed also faces challenges in achieving its economic objectives. Inflation remains above its 2% target: Its preferred measure is at 2.4%, though core prices — considered a better gauge of where inflation is headed — rose 2.8% in November from a year ago.

The Federal Reserve is expected to keep its key interest rate unchanged this week, despite Donald Trump's calls for cuts.

Powell said the Fed is awaiting to see what policies are enacted by the newly inaugurated Donald Trump administration.