"Powell suggests lower rate hikes to control inflation, but markets remain cautious"

Federal Reserve Chair Jerome Powell said that interest rates may not have to rise as much as expected to control inflation due to stresses in the banking sector. Powell noted that Fed initiatives used to deal with problems at mid-sized banks have mostly halted worst-case scenarios from transpiring. However, he noted that the problems at Silicon Valley Bank and others could still reverberate through the economy. Powell characterized current Fed policy as "restrictive" and said future decisions would be data-dependent as opposed to being a pre-set course.