Global markets weakened after Federal Reserve Chair Jerome Powell suggested interest rates may need to remain high for longer than investors had expected. The comments revived concerns that inflation is still too persistent for the central bank to begin easing policy soon.

Stocks moved lower and U.S. Treasury yields climbed as traders reassessed the outlook for borrowing costs. The shift reflected growing uncertainty over how quickly the Fed can cut rates without risking another inflation flare-up.

Powell’s remarks underscored the central bank’s cautious stance as it weighs signs of slower price growth against ongoing risks in the broader economy. Investors had been hoping for clearer signals that rate cuts could arrive sooner, but the latest guidance pointed to a more restrained timeline.

The market reaction showed how sensitive investors remain to Fed messaging. For households and businesses, higher-for-longer rates can mean more expensive loans, tighter credit, and continued pressure on economic activity.