The Federal Reserve's Federal Open Markets Committee kept the benchmark federal funds rate steady. Surprisingly, he explicitly took a March rate cut off the table. But some are asking what the Fed is ultimately waiting for, as 3- and 6-month views of core inflation are already below the target 2% rate.

No one should be surprised that the Fed didn't cut rates in this January meeting. Even the most optimistic were saying March, and now that seems likely off the table, given Jerome Powell's remarks during the press conference. "Based on the meeting today, I would tell you that I don't think it is likely that the Committee will reach a level of confidence by the time of the March meeting.

"We have a ways to go" to a soft landing, Powell said in answer to a question. "Core inflation is well above our target, on a 12-month basis. Certainly, we're encouraged by the progress, but we're not declaring victory at this time."