U.S. stock indexes are down Tuesday after Federal Reserve Chairman Jerome Powell’s comments to Congress indicating a more “hawkish” course for the U.S. regulator’s monetary policy.

The Federal Reserve may have to raise interest rates more than expected in response to the latest strong data, Fed Chairman Jerome Powell said in a speech to the U.S. Congress on Tuesday.

Traders sharply increased their bets that the Fed will raise borrowing costs by 50 basis points in March, with investors estimating a nearly 40% chance of such a move, up from 23% before the Fed Chairman’s speech. Two-year Treasury bond yields (US2YT=RR), the most responsive to changes in rate expectations, jumped to their highest since 2007 at 4.96%.

The Dow Jones index fell 0.79% to 33,167.17 points, the S&P 500 index shed 0.92% to 4,011.11 points, and the Nasdaq fell 0.74% to 11,589.88 points.

Earlier we reported that avoiding a US recession is a “tricky” scenario for the market.