ZION.Ofell nearly 5%, and Valley National Bancorp VLY.Odropped 5.2%. Tighter credit conditions meant that "our policy rate may not need to rise as much as it would have otherwise to achieve our goals," Powell told a central bank conference in Washington. "People thought that inflation was going to come down faster and that the pressure on these regional banks and those failures were leading to this narrative that the Fed was going to lower interest rates by the end of this year.