Federal Reserve Chair Jerome Powell says that he would need to see a jump in inflation in order to raise a benchmark interest rate.

The Fed's preferred measure of inflation has increased 1.8 percent in the past 12 months, slightly below the central bank's 2 percent target.

Fed officials say the central bank would be patient on any further rate hikes because of slower global economic growth and the risks from events such as the United Kingdom's plans to depart the European Union.

"I would want to see a need for further rate increases, and for me a big part of that would be inflation," Powell said.

In a wide-ranging press conference:

• Powell says he did not cave to pressure from President Donald Trump to keep interest rates low. The Fed held its benchmark rate at a range of 2.25 to 2.5 percent at its January meeting, after having hiked rates four times in 2018 — decisions that drew harsh criticism from the president. The Fed has taken a slightly more accommodative tone, saying it would be "patient" with any future rate hikes. But Powell on Wednesday dismissed that this choice stemmed from Trump's influence. "We're never going to take political considerations into account, or discuss them as part of our work," Powell said.
• Powell says U.S. central bank officials discussed the possibility of ending the reduction of the Fed balance sheet. Powell told reporters that no decision had been made regarding the $4 trillion balance sheet at the two-day meeting that concluded Wednesday, even though Fed officials are talking about its optimal size. The balance sheet ballooned to as much as $4.5 trillion as the Fed purchased U.S. Treasury notes and mortgage-backed securities in order to support the economy after the financial crisis. Some market participants estimate that the balance sheet should only be reduced to $3.5 trillion, well above its $900 billion level when the recession struck in 2007.