The Fed kept interest rates unchanged for the fourth consecutive meeting. (Source: Reuters)

The Federal Open Market Committee (FOMC) dropped language indicating a willingness to continue raising interest rates until inflation is under control and moving toward the Fed's 2% target.

At a press conference after the meeting, Fed Chairman Jerome Powell said policymakers are waiting to review additional data to determine trends.

He noted that a rate cut in March is “unlikely.”

“I don’t think the committee will have that level of confidence by the March meeting… We want to see more good data. It’s not that we’re looking for good data, but we want to see a continuation of the good data that we’ve found,” Chairman Jerome Powell said.

The Fed has yet to signal when it will cut interest rates in 2024. Bank officials said they will continue to monitor market inflation developments to adjust policy.

At its March 2024 policy meeting, the Fed will have some more information on the January and February Consumer Price Index (CPI), as well as data on Personal Consumption Expenditures (PCE), the central bank's preferred inflation measure.

The bank's decision also ruled out a rate hike, but remained cautious about the timing of its rate cut.