WASHINGTON >> Federal Reserve Chairman Jerome Powell stressed today that the central bank’s policymakers have yet to decide how large an interest rate hike to impose at its next meeting in two weeks in its drive to defeat high inflation.

“If — and I stress that no decision has been made on this — if the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,” Powell said on his second day of semi-annual testimony to Congress.

The Fed chair had made a similar comment Tuesday to a Senate panel but had not included the caveat that “no decision has been made.” Some economists and Wall Street traders had interpreted those remarks as a signal that the Fed would raise its benchmark rate by a substantial half-point at its March 21-22 meeting.

As a result, stock prices tumbled Tuesday, and some bond yields rose as markets anticipated a faster pace of rate hikes.

When the Fed raises its key short-term rate, it typically leads to more expensive mortgages, auto loans, credit card lending and business loans. Higher rates can discourage consumers from spending and thereby cool the economy and inflation. But they also raise the risk that the economy will fall into a recession.

Powell’s more nuanced remarks today appeared to be an effort to quell any assumption that the Fed has already decided to raise rates more aggressively based on a recent string of data that pointed to strong economic growth and still-high inflation.

The Fed slowed its pace of hikes in February, boosting its key rate by just a quarter-point, after a half-point increase in December and three-quarters of a point four times before that. Powell’s comments Tuesday had appeared to imply that the Fed would return to larger rates hikes at its next meeting March 21-22.

But under questioning today from Rep. Patrick McHenry, the Republican chairman of the House Financial Services Committee, Powell said the Fed would closely scrutinize data on hiring, retail sales and inflation that will be released next week before settling on its next interest rate moves.

“We’re not on a preset path, and we will be guided by the incoming data,” Powell said. “We have not made any decision about the March meeting.”

Some analysts concluded that Powell’s remarks today implied that either a half-point or a quarter-point hike is possible when the Fed next meets in two weeks.

Krishna Guha, an analyst at Evercore ISI, an investment bank, wrote today that “we take some reassurance from these remarks that Powell intended to signal” that a half-point hike, along with a quarter-point hike, is a “live option” this month and does not necessarily “signal a strong default” for a half-point increase.

At the same time, Powell reiterated his comments Tuesday that had signaled that the Fed will ultimately raise its key rate higher than it had forecast in December.

“The data we’ve seen so far this year,” he said today, “suggests that the ultimate level of rates will need to be higher.”

On Tuesday, economists at Goldman Sachs said they now expected the central bank to raise its benchmark short-term rate to roughly 5.6%, up from its current 4.6%. That would be above the 5.1% level that the Fed’s policymakers had penciled in at their meeting in December.