Federal Reserve Chair Jerome Powell
Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting on December 14, 2022 in Washington, DC.
  • US stocks tumbled on Tuesday after Fed chief Jerome Powell opened the door to bigger rate hikes.
  • Markets now see a 50-basis-point increase as likely at this month's Fed meeting.
  • That would mark a reacceleration in the pace of tightening from last month's hike of 25 basis points.

US stocks tumbled on Tuesday after Federal Reserve Chairman Jerome Powell opened the door to bigger rate hikes.