Fed Chief Powell Signals Cautious Approach on Rate Hikes As Soft Landing Hopes Rise

Powell said inflation is still too high and the Fed is proceeding carefully on rate hikes.

Powell did not rule out further rate hikes if the economy continues surprising to the upside.

Some economists now see a soft landing scenario rather than recession.

The 10-year Treasury yield hitting 5% may reflect economic strength rather than expectations of more Fed hikes.

Many consumers are still spending thanks to low fixed rate mortgages and strong job market.