US Federal Reserve Chairman Jerome Powell noted the high uncertainty surrounding President Donald Trump's economic policies and their implications, but said the central bank should not rush to adjust interest rates.

"The net effect of these policy changes is what will matter for the economy and for the path of monetary policy," Powell said at a forum in New York.

"We don't need to rush and we're in a good position to wait for greater clarity."

Powell's comments come at a time when Trump's return to the White House in January has brought rapid changes that promise to spread across the world's largest economy.

The president took aim at illegal immigration while imposing sweeping levies on major trading partners Canada, Mexico and China.

The tariffs led to a collapse in U.S. markets, and economists warned that if sustained, such additional duties could weigh on long-term economic growth and raise inflation.

For now, however, Powell says the U.S. economy remains in a good position, adding that it is growing at a steady pace.

He said the Fed is focused on separating the signal from the noise when it comes to the impact of policies. | BGNES