By Luzi Ann Santos | moomoo News

Federal Reserve Chairman Jerome Powell said it's unlikely that policymakers will increase interest rates, even as he acknowledged that the path to bringing inflation down to their 2% target remains uncertain.

"I think it's unlikely that the next policy rate move will be a hike," Powell said in a press conference after the Federal Open Market Committee kept federal funds rate unchanged at a target range of 5.25% to 5.5%. "We need to see persuasive evidence that our policy stance is not sufficiently restrictive to bring inflation down to 2%. That's not what I think we're seeing, as we mentioned."

US equities swung between gains and losses as Powell spoke at the press conference. By the time markets closed, the $S&P 500 Index (.SPX.US)$ was down 0.3% at 5,018.39. The $Nasdaq Composite Index (.IXIC.US)$ also slipped 0.3%, while the $Dow Jones Industrial Average (.DJI.US)$ gained 0.2%.

"Inflation is still too high," Powell said. "Further progress in bringing it down is not assured. And the path forward is uncertain. We are fully committed to returning inflation to our 2% goal."

The FOMC acknowledged the stickiness of inflation. "In recent months, there has been a lack of further progress toward the Committee's 2 percent inflation objective," the committee said in a statement.

"The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals," the FOMC said in a statement.

Asked whether he still sees three interest rate cuts this year similar to the recent dot plot by policymakers that illustrated their median projection for borrowing costs, Powell said "I've said that it appears then that it's going to take longer for us to reach that point of confidence. I don't know how long it will take."

"I can just say that when we get that confidence, then rate cuts will be in scope," he said.