Federal Reserve Chair Jerome Powell expressed satisfaction Tuesday with the progress on inflation over the past year but said he wants to see more before being confident enough to start cutting interest rates.

“We’ve made quite a bit of progress and in bringing inflation back down to our target,” Powell said at a central banking forum on Sintra, Portugal.

“The last ]inflation] reading and the one before it to a lesser, lesser extent, suggest that we are getting back on the disinflationary path. We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing type or policies of loosening policy,” he added.

Powell spoke at a forum that also included European Central Bank President Christine Lagarde and Brazil central bank Governor Roberto Campos Neto. The forum is presented by the ECB.

The comments come with markets closely watching moves from the Fed and its global counterparts as inflation shows signs of easing and some central banks, including the ECB, have slowly started rolling back interest rates.

While Powell said he sees progress on inflation, he’s wary of moving too soon and threatening the downward path of price increases, which hit their highest pace since the early 1980s two years ago.

“We’re well aware that if we go too soon, that we can undo the good work we’ve done,” he said. “If we do it too late, we could unnecessarily undermine the the recovery and the expansion.”

Earlier this year, markets had expected at least six Fed rate cuts of a quarter percentage point each. Market pricing has since adjusted to anticipate two cuts, one in September and another before the end of the year. However, members of the rate-setting Federal Open Market Committee at their June meeting penciled in just one.

Asked if he thought the Fed might cut in September, Powell responded, “I’m not going to be landing on any specific dates here today.”

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