US stocks fall and 10-year Treasury yields widen following Powell's 'positive' outlook

First testimony since taking over role

New Federal Reserve Chairman Jerome Powell's signal that the central bank could hike rates more than the anticipated three times this year, in an attempt to contain inflation, sent US stocks to their first loss in four days on Tuesday.

Speaking at his first semi-annual monetary policy testimony since taking over from Janet Yellen earlier this year, Powell presented an upbeat picture of the US economy, opening up the option for more than three rate rises this year as inflation moves "up to target". On 14 February, the US Bureau of Labor Statistics announced the Consumer Price Index (CPI) remained unchanged over the last 12 months at 2.1%, beating consensus estimates of 1.9% and putting further pressure on the Fed to hike rates faster. Markets are now pricing in a 30% chance of four rate rises this year, almost triple...