March 7 (Reuters) - The U.S. central bank will be in no rush to cut interest rates while it waits for more clarity on how the policies of the new Trump administration affect the economy, Federal Reserve Chair Jerome Powell said on Friday.

"The new administration is in the process of implementing significant policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation," Powell said in remarks prepared for delivery at a University of Chicago Booth School of Business economic forum in New York City. "Uncertainty around the changes and their likely effects remains high.

"We are focused on separating the signal from the noise as the outlook evolves. We do not need to be in a hurry, and are well-positioned to wait for greater clarity."

Powell, spoke at a volatile time, with stock markets and bond yields both declining in the wake of President Donald Trump's whipsaw announcements of steep import tariffs on major trading partners Mexico and Canada, followed by delays in implementing them. Trump has also doubled tariffs on imports from China.

MARKET REACTION:

STOCKS: The S&P 500 .SPX pared a loss and was off 0.38%

BONDS: US Treasury 10-year yield ticked higher but was 1.3 bp lower on day at 4.269%

FOREX: The dollar index =USD ticked up but was still off 0.25% from late Thursday

COMMENTS:

JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VA

"Powell is echoing what the rest of us feel: unease that while the adjustments made by the administration may well work and put the country on better financial footing, the speed and whipsaw like nature of the change makes it difficult to predict and to plan around. So, the best action when that occurs is to sit and wait."

JAY WOODS, CHIEF GLOBAL STRATEGIST, FREEDOM CAPITAL MARKETS, NEW YORK

"This market will turn on any Powell commentary. He probably can give investors a little calm in the storm...but the market is too jittery. We're not supposed to see intraday swings like this. We fell after Powell stopped speaking and now the market's waiting for the next speaker who can calm things down."

"The market is jumping from one headline to the next. Trump is causing so much anxiety... we may get some short covering going into the weekend."

"As someone looking for an opportunity to buy stocks, this is good because I don't think it derails the secular bull market...I think any more of a selloff will be the last washout. If (the S&P 500) can close above the 200 daily moving average, we might get a relief rally next week."

OLIVER PURSCHE, SENIOR VICE PRESIDENT, WEALTHSPIRE ADVISORS, NEW YORK

“Powell's statements reflect the anxiety, an insecurity that every investor is facing right now and that the market is reflecting as well. That's why you're seeing 1% moves in either direction.”

“Because nobody seems to be able to discern what Trump is going to do next. There’s tariffs, there’s no tariffs. There's pause on tariffs, there are exemptions.”

“I think it's slightly misleading to say the economy’s in a good place because it’s clearly slowing and inflation is clearly still an issue. And could get worse depending on what happens with tariffs and so forth.”

(Compiled by the Global Finance & Markets Breaking News team)

((alden. bentley@thomsonreuters.com; 646-281-6041;))