By Ovunc Kutlu
ISTANBUL (AA) - US Federal Reserve Chair Jerome Powell said Wednesday the central bank will move “carefully” in determining the extent of monetary policy tightening based on future macroeconomic data.
"We will continue to make our decisions meeting by meeting, based on the totality of incoming data, and their implications for the outlook of economic activity and inflation, as well as balance of risks," he said in a post-meeting news conference.
Powell's remarks came after the Fed skipped an interest rate hike for the second time this year, but left the door open for one more rate increase of 25 basis points in the remainder of its two meetings this year.
"Inflation has moderated somewhat since the middle of last year, and the longer-term inflation expectations appear to remain well anchored," he said. "Getting inflation sustainably down to 2% has a long way to go."
Powell said the American economy is facing headwinds from tighter credit conditions for households and businesses, and stressed the Fed is "mindful of the inherent uncertainties."
"We are prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we are confident that inflation is moving down sustainably toward our objective," he added.