“If — and I stress that no determination has been made on this — if the totality of the info have been to point that quicker tightening is warranted, we might be ready to extend the tempo of fee hikes,” Powell mentioned Wednesday, his second day of testimony this week on Capitol Hill.

Powell had made an analogous touch upon Tuesday to a Senate panel however had not included the caveat that “no determination has been made.” Some economists and Wall Road merchants had interpreted his feedback Tuesday as a sign that the Fed would elevate its benchmark fee by a half-point at its March 21-22 assembly.

Because of this, inventory costs tumbled Tuesday, and a few bond yields rose as markets anticipated a quicker tempo of fee hikes.

Powell’s extra nuanced remarks Wednesday gave the impression to be an effort to quell any assumption that the Fed has already determined to lift charges extra aggressively based mostly on a latest string of knowledge that pointed to robust financial development and still-high inflation.

The Fed had slowed its tempo of will increase in February, having boosted its key fee by only a quarter-point, after a half-point improve in December and three-quarters of a degree 4 occasions earlier than that. Powell’s feedback Tuesday appeared to suggest that the Fed would return to larger charges hikes at its subsequent assembly March 21-22.

However below questioning Wednesday from Rep. Patrick McHenry, the Republican chairman of the Home Monetary Companies Committee, Powell mentioned the Fed would intently scrutinize knowledge on hiring, retail gross sales and inflation that shall be launched subsequent week earlier than selecting its subsequent transfer.

“We’ve not made any determination in regards to the March assembly,” Powell mentioned.