Federal Reserve Chair Jerome Powell said on Monday in a speech that the Fed believes further cooling in the labor market conditions isn't necessary for the 2% inflation target to be achieved.

While "many indicators show the labor market is solid," it is evident that it has cooled over the past year, Powell noted. "Disinflation has been broad based, and recent data indicate further progress toward a sustained return to 2% ... Broader economic conditions also set the table for further disinflation. The labor market is now roughly in balance. Longer-run inflation expectations remain well anchored," he detailed.

Talking about monetary policy, the Fed chair said that the "patient approach has paid dividends." He added that should the United States' economy evolve "broadly as expected," the policy would move to a "more neutral stance."