The statement came after the FOMC decided to leave its benchmark interest rate target unchanged at 2.25 percent to 2.5 percent. In addition, the committee vowed to take a "patient" approach toward further hikes. Powell added that the funds rate is "in the committee's" range of a neutral rate estimate, a key measure for the Fed.

"The case for raising rates has weakened somewhat," Powell said during a news conference following this week's two-day Federal Open Market Committee meeting.

Federal Reserve Chairman Jerome Powell issued his strongest statement yet Wednesday that the central bank has changed its outlook regarding interest rate hikes.

The position on rates marks an evolving process for Powell, who has sent jitters through markets in recent months with remarks that indicated he believed the Fed would be continuing to raise interest rates at least until it found a neutral range.

"I would want to see a need for further rate increases," Powell said Wednesday, adding that inflation would be key.

Also causing some concern on the Fed are geopolitical issues like the ongoing Brexit negotiations and an economic slowdown in China.

As things currently stand, Powell said the committee can take its time before additional rate moves. The Fed has hiked its benchmark rate eight times since it began the normalization process in December 2015 and has indicated two more increases in 2019.

However, futures markets are pricing in no further tightening and in fact are noting a small chance for a rate cut over the next year. "Today, the FOMC decided that the cumulative effect of those developments … warrant a patient wait-and-see approach regarding future policy changes."

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