In his prepared testimony, Powell said that the Fed would have to raise interest rates to higher levels if the economic data was strong. In addition, he noted that Fed was prepared to move in larger steps if it believed that such measures were necessary to fight inflation. Interestingly, the FedWatch Tool indicates that there is a 0.2% probability of a 625 – 650 bps rate in December 2023, which shows that some traders are ready to bet on extreme scenarios.