Amid last week’s ructions, nothing caused more chaos than Fed Chair Jerome Powell’s comments Thursday on the trajectory of monetary policy. He suggested at an event at the Economic Club of New York that the US central bank is inclined to hold interest rates steady at its next meeting, while leaving open the possibility of another hike later if policymakers see further signs of resilient economic growth.

READ MORE: Wild Treasury Swings Just Starting as Bond Traders ‘Buckle Up’

Fed Chair Jerome Powell appeared this week at the Economic Club of New York against the backdrop of big moves in the bond market, especially for long-dated Treasuries. In a fireside chat with Wall Street Week afterward, he acknowledged that “it's hard to say exactly what's going on with longer-term yields.”

But whatever the cause, he sees those higher yields as potentially doing part of the Fed’s monetary tightening for it, reducing the impetus for hikes “on the margin.”

READ MORE: Wall Street Week: Jerome Powell Finds a ‘Very Resilient Economy’

Federal Reserve Chair Jerome Powell tells Wall Street Week that in hindsight, less aggressive monetary stimulus during the pandemic could have helped keep inflation under control. He also talks about the importance of bringing the labor market back into balance. He speaks with David Westin at an event hosted by the Economic Club of New York.

READ MORE: Powell: Possible to Have Done Less Stimulating During the Pandemic

“Financial conditions have tightened significantly in recent months, and longer-term bond yields have been an important driving factor in this tightening,” Fed Chair Jerome Powell said during a discussion at the Economic Club of New York on Thursday, adding that the Fed will “remain attentive to these developments.”

READ MORE: A key market indicator hasn’t been this high since the Great Recession

NEW YORK, Oct 20 (Reuters) - Some investors believe a bond market selloff that has pushed the benchmark U.S. Treasury yield to 5% may have more room to run, as the Federal Reserve gives little indication of veering from its "higher for longer" mantra.

Fed Chair Jerome Powell walked a narrow line in his speech before the New York Economic Club on Thursday, saying the stronger-than-expected economy might warrant tighter financial conditions while also noting emerging risks and a need to move with care.

READ MORE: Relentless climb in Treasury yields may have further to run after surging to 5%

Speaking at the Economic Club of New York, Federal Reserve chair Jerome Powell suggested the Fed could hold interest rates steady again at its next meeting. But, he warned a future hike isn't out of the question. Powell sat down for an exclusive conversation with Bloomberg Wall Street Week host David Westin, following his remarks.

READ MORE: Federal Reserve Chair Jerome Powell Talks Fed Rates Outlook

In a nail-biting hour of twists and turns, the financial markets took a wild ride as Federal Reserve Chair Jerome Powell sat for an interview with Bloomberg during an event organized by the Economic Club of New York.

Powell’s remarks on Thursday afternoon triggered shifts among stocks, currencies and bonds echoing the market responses typically seen following his press conferences following Fed rate-setting meetings.

READ MORE: Powell's Interest Rate Remarks Trigger Thursday Roller Coaster: What Did Fed Chair Say?

Federal Reserve Chair Jerome Powell said, “given the uncertainties and risks, and how far we have come, the committee is proceeding carefully,” as the US central bank considers the path of policy. Powell spoke Thursday to the Economic Club of New York.

READ MORE: Powell Says Fed ‘Proceeding Carefully’ on Policy Path

Thursday saw the U.S. stock market displaying mixed performance as 10-year Treasury yields approached the 5% threshold, only to recover in response to Federal Reserve Chair Jerome Powell‘s opening remarks prior to his Economic Club of New York address, prompting traders to scale back their expectations for interest rate increases.

The FOMC is now proceeding carefully, acknowledging that substantial tightening in financial conditions can result from an increase in bond yields, subsequently affecting policy decisions, Powell said. A period of above-trend growth may still imply “meaningful tightening” of interest rates, he said.

READ MORE: US Stocks Rebound As Powell Signals Fed Will Proceed 'Carefully' On Interest Rates: What's Driving Markets Thursday?

Here are the key takeaways from Federal Reserve Chair Jerome Powell ’s remarks at the Economic Club of New York Thursday.

READ MORE: Here Are the Takeaways From Powell’s Remarks at Economic Club of New York

In remarks before the Economic Club of New York on Thursday, Federal Reserve Chair Jerome H. Powell was resolute in his message: The central bank will not stop short on zapping higher-than-normal inflation from the economy.

READ MORE: Fed’s Powell: High inflation and growth could mean more rate hikes

Powell tried to paint a balanced picture of the challenge facing the Fed in a speech before the Economic Club of New York.

READ MORE: Strong Economic Data ‘Could Warrant’ Higher Rates, Fed Chair Says

Federal Reserve Chair Jerome Powell on Thursday said the recent rise in longer-term bond yields is tightening financial conditions as the central bank wants and could “at the margin” mean there is less need for the Fed to increase rates further.

“It doesn’t seem to be principally about expectations of us doing more,” Powell told the Economic Club of New York. It looks to be mainly an effect of higher so-called term premiums, he said, and does not reflect expectations for higher inflation. He added he is “not blessing any particular level” of longer-term rates.

READ MORE: Fed Chair Powell: bond yield rise could mean Fed needs to do less

Fed Chair Jerome Powell at the Economic Club of New York responds to questions about the economic impacts of monetary policy, debt terms limiting the effect of rate hikes, and more.

READ MORE: Fed Chair Jerome Powell: The resilience of the economy is a story of stronger demand

CNBC’s Steve Liesman joins ‘Halftime Report’ to discuss Fed Chair Jerome Powell’s comments from the Economic Club of New York, which focused on the state of inflation, rate hikes, and labor market conditions.

READ MORE: Fed Chair Powell: Continued Economic Strength Could Warrant Further Tightening

Federal Reserve Chair Jerome Powell said Thursday that inflation remains too high and that bringing it down to the Fed's target level will likely require a slower-growing economy and job market.

Powell noted that inflation has cooled significantly from a year ago. But he cautioned that the economy is growing faster than the Fed had expected and could continue to keep inflation elevated. As a result, the Fed chair said, it's not yet clear whether inflation is on a steady path back to the Fed's 2% target.

“We certainly have a very resilient economy on our hands,” Powell said in a discussion at the Economic Club of New York. “Many forecasts called for the U.S. economy to be in recession this year. Not only has that not happened; growth is now running for this year above its longer-run trend. So that’s been a surprise.”

READ MORE: Fed Chair Powell: Slower economic growth may be needed to conquer stubbornly high inflation

ECNY: Signature Luncheon

Join us for a Signature Luncheon with Jerome Powell. As the Chair of the Federal Reserve Bank, Chair Powell will address the Club on the U.S. economic outlook and monetary policy.

A key update comes Thursday at noon Eastern, with Jay Powell, the Fed chair, set to speak at the Economic Club of New York.

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“Given the uncertainties and risks, and how far we have come, the committee is proceeding carefully,” Powell said in prepared remarks Thursday to the Economic Club of New York.

READ MORE: Powell Says Fed ‘Proceeding Carefully,’ Leaves Door Open to Rate Hike

“Oil reserves defined the policy for the last five decades and the geopolitics of the world,” Intel’s CEO Pat Gelsinger said during a Tuesday session at the Economic Club of New York. Today, he says, technology supply chains are the key.

“Manufacturing and R&D are more important for the next five decades. So let’s build them where we want them.”

READ MORE: Intel CEO Has a Plan to Win the Chip War. It Requires Immigration Reform