rick rieder, Chief Investment Officer of Global Fixed Income at the world’s largest wealth manager Black Rock BLACK allegedly said the federal reserve could hike interest rates to 6% and keep them there for an extended period of time to curb inflation.

“We believe there is a reasonable chance that the Fed will need to bring the fed funds rate to 6% and then leave it there for an extended period of time to slow the economy and bring inflation down to almost 2%,” he said Rieder in a note Tuesday, according to a Reuters report.

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Major Wall Street indices lost over 1% on Tuesday after Fed Chairman Jerome Powell specified in his testimony before congress that the central bank would be willing to increase the pace of rate hikes if faster tightening appears warranted.

“If the body of data suggested that faster tightening was warranted, we would be willing to increase the pace of rate hikes,” Powell said. “The historical record strongly warns against premature policy easing. We will stay the course until the job is done,” he said.

Price promotion: The Dow Jones closed 1.72% lower on Tuesday, entering negative territory year-to-date, while the 2-year Treasury note yield surged over 5% to its highest level since 2007.

The SPDR S&P 500 ETF Trust SPY closed 1.53% lower during the Invesco QQQ Trust Series 1 QQQ lost 1.23%.

According to the CME FedWatch tool, 73.5% of traders are pricing in a 50 basis point hike by the central bank at its March policy meeting.

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