he Fed chairman said progress in bringing down inflation is ‘not assured and the path forward is uncertain’ – meaning interest rates will likely remain high for a while.
Powell’s comments echoed the Fed’s statement in announcing the decision, saying that the committee “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”
However, Powell added that it was unlikely the next move would be a rate hike.
The central bank also decided to slow its sales of securities, a move designed to keep the financial system operating smoothly following its extraordinary injection of liquidity into the banking sector during the COVID-19 pandemic.
Stocks rose after the decision, with the Dow Jones Industrial Average surging more than 400 points.