Federal Reserve Chairman Jerome Powell said this week that the combination of low inflation and low unemployment shows that the U.S. economy is in "extraordinary times."

“This historically rare pairing of steady, low inflation and very low unemployment is a testament to the fact we remain in extraordinary times,” Powell said in a speech Thursday. “I was asked at last week’s news conference whether these forecasts are too good to be true — a reasonable question.”

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"From the standpoint of our dual mandate, this is a remarkably positive outlook," Powell said. "Since 1950, the U.S. economy has experienced periods of low, stable inflation and periods of very low unemployment, but never both for such an extended time as is seen in these forecasts."

The Fed projects that unemployment will remain below 4 percent through 2020 and that inflation will also stay low during that period. The jobless rate in August was 3.9 percent, according to the Labor Department.