- We will stay the course until the job is done, says Powell during a speech in Washington.
Wednesday's announcement comes after the Federal Reserve (Fed) in early November made its fourth so-called triple increase in the key interest rate in a row.
The interest rate was raised by 0.75 percentage points to 3.75–4.00 percent.
Powell already opened the door to reduce the pace of the aggressive interest rate hikes.
Now Powell says that monetary policy will still remain restrictive to rein in inflation.
- Despite a promising development, we have a long way to go to restore price stability, he says.
The goal is to eventually bring inflation down to 2 percent.
Powell emphasizes that it takes time for the central bank's actions to have a real effect.
It is still likely with a less aggressive stance soon.
- As soon as December, it may be time to reduce the rate of interest rate increases.