Federal Reserve Chair Jerome Powell said Wednesday Fed policymakers want to see more progress on bringing inflation down as they consider the path of future rate cuts, as inflation has exceeded year-end projections.

"As we think about further cuts, we're going to be looking for progress on inflation. We have been moving sideways on 12-month inflation" Powell told a news conference after the Fed cut rates and signaled a slowing of the pace of future reductions.

"As we go forward, we're going to want to be seeing further progress on bringing inflation down, and keeping a solid labor market."

Powell added the U.S. central bank has no desire to hold the cryptocurrency Bitcoin amid debate over whether the incoming Trump administration might build some sort of government owned stock of the asset.

"We’re not allowed to Bitcoin," Powell said. In terms of the legal issues around holding Bitcoin, "that’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.”