Here's my personal opinion. If you are heavy... it will do you some good to get lighter, even if it means a loss in power. This is true, the heavier you are (fat heavy). There are old school gym rats who will tell you that losing fat and gaining muscle is impossible. Well the Keto diet proves this wrong IF your body fat percentage is high (not if you're at 12% or lower). So if you are above 12% body fat, you can burn it and gain muscle at the same time by following a Keto or very strict carb-cycling diet. But once you hit that 12% bfp in my opinion, that's when you have to weigh your options: Do you want to lose a little muscle, too? You'll start burning 75% fat and 25% muscle in your weight loss efforts using Keto or carb cycling.
Currently I'm following a pretty strict diet of pretty much a lot of meat (about 180g per day), a lot of veggies and the only carbs I consume is right before strength training (and right after). And by carbs I mean 1 banana. That's it. I'm still losing weight. Lost 20 lbs so far since October. I hope to lose 10 more. Once that happens (hopefully by Feb 1), my diet changes and I'll consume more calories, more carbs immediately before my workouts and for the two meals following my workouts. And I'll be at a 200 calorie surplus.
Shoot to lose no more than 2lbs per week. If you are already lean, eat more carbs and still lots of protein.