Australian shares closed lower on Wednesday, after the Federal Reserve Chair did not indicate rate cuts next month.
The S&P/ASX 200 fell 0.9% or 81.4 points to close at 8,764.5.
Jerome Powell warned that inflation might rise and employment might fall, adding that there was no "risk-free path", Bloomberg reported.
"Powell's warning against cutting too aggressively highlights the growing split inside the Fed," said Natalie Gallagher, principal economist at Board.
"That divide itself has become a market catalyst, adding uncertainty around the pace of the cutting cycle," Gallagher added.
On the domestic front, Australia's trimmed mean inflation over the June and September quarters is at risk of annualizing in the top half of the target band, and the economy is yet to fully feel the impact of the three policy rate cuts to date, ANZ Research said.
Australia's consumer price index (CPI) rose 3% in the 12 months to August, reported the Australian Bureau of Statistics.
The Reserve Bank of Australia (RBA) is expected to keep the cash rate unchanged at its meeting on Sept. 30, as "surprisingly" strong inflation and Gross Domestic Product data since the Bank's August meeting raise questions about the need for further rate cuts, according to a report by Bank of America (BofA) global research.
In company news, The Star Entertainment Group (ASX:SGR) said that the New South Wales Independent Casino Commission advised the firm that the suspension of The Star Sydney casino's license will remain in effect at this time. Shares of the company fell past 2% at market close.
James Hardie Industries (ASX:JHX) may face rising investor pressure ahead of its Oct. 30 annual general meeting after disclosing on Tuesday the agenda for the meeting, the Australian Financial Review reported. Shares of the company fell 5% at market close and earlier hit a 52-week low.
Lastly, Westpac Banking (ASX:WBC, NZE:WBC) will replace 200 teller and personal banker jobs in its retail banking unit with concierges, the Australian Financial Review reported, citing an email to staff from Damien MacRae. Shares of the company fell past 3% at market close.