Federal Reserve Chair Jerome Powell said the central bank is prepared to tighten policy further if appropriate.

"We will make decisions about the extent of any additional policy and how long policy will remain restrictive based on the totality of the incoming data, the evolving outlook, and the balance of risks," Powell said at a press conference in Washington.

Powell spoke Wednesday after the central bank left interest rates unchanged for a third straight meeting and gave the clearest signal yet that its aggressive hiking campaign is finished, forecasting a series of cuts next year. During the press conference, Powell also said that while inflation has eased, it remains too elevated. 

Officials on the Federal Open Market Committee decided unanimously to leave the target range for the benchmark federal funds rate at 5.25% to 5.5%, the highest since 2001.

The Fed's "dot plot" of rate projections shows a wide range of estimates on how much the Fed should cut next year, with median at 75 basis points. Eight officials anticipate fewer reductions, while five expect deeper cuts.

Source: Bloomberg