The U.S. dollar dipped to 16-week lows against a basket of major currencies on Thursday after data showed that U.S. consumer spending increased solidly in October, while inflation moderated, adding to expectations that the Federal Reserve is closer to reaching a peak in interest rates.

The move comes after Fed Chairman Jerome Powell on Wednesday said that it was time to slow rate hikes, noting that “slowing down at this point is a good way to balance the risks.”

Investors took comfort from the comments, even as Powell also said that rates would still go higher and that controlling inflation “will require holding policy at a restrictive level for some time.”

Thursday’s data showed that consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.8% after an unrevised 0.6% increase in September.

The personal consumption expenditures (PCE) price index rose 0.3 after advancing by the same margin in September. In the 12 months through October, the PCE price