Federal Reserve Chairman Jerome Powell said Friday the central bank's pivot this year to lower interest rates has helped sustain U.S. economic growth.

Speaking during a forum in Zurich, the central bank leader gave mostly positive reviews to where the U.S. stands now, even while much of the rest of the world weakens.

"The Fed has through the course of the year seen fit to lower the expected path of interest rates," he said. "That has supported the economy. That is one of the reasons why the outlook is still a favorable one."

Powell noted multiple challenges to that picture, specifically the drag from Europe and elsewhere. That's compounded by the tariff battle between the U.S. and China as well as a persistently low inflation rate that has run below the Fed's 2% target.

He said that trade uncertainty is weighing on business investment and confidence.

However, he expects the problems to be contained and not become a major impediment to growth. Powell described the labor market as in "quite a strong position" and the consumer to be "strong" as well.