Federal Reserve Chairman Jerome Powell stated that the central bank's interest rate is likely to rise by half a percentage point at the Fed’s next meeting in May. Powell also said the bank is willing to make similarly massive moves after that. “It is appropriate in my view to be moving a little more quickly,” Powell stated on Thursday.
Treasury yields increased and stocks fell in response to the announcement. This is the type of financial tightening that helps the Fed gain control of inflation, which could be Powell's desired outcome.