Andrew Kelly/Reuters
- Stocks traded mixed on Wednesday following Powell's hawkish two-day testimony before Congress.
- The Fed Chair warned steeper rate hikes may be needed due to strong economic data.
- Higher interest rates could also raise the risk of recession, which is weighing on investors.
US stocks traded mixed on Wednesday following the conclusion of Federal Reserve Chairman Jerome Powell's hawkish testimony before Congress, where he signaled steeper rates hikes are on the table if the economy is still showing signs of running too hot.
Markets were pricing in higher odd of the Fed dialing rate hikes back up to 50 basis points at the upcoming meeting, a reversal following last month's downsized move of 25 basis points.