Federal Reserve (Fed) Chairman Jerome Powell’s hawkish surprise pushed multiple market players, including BlackRock, to inflate their Fed rate forecasts and back the “higher for longer” concerns.

“The US Federal Reserve could raise interest rates to 6% and keep them there for an extended period of time to fight inflation,” said Rick Rieder, chief investment officer of global fixed income at BlackRock, the world’s largest asset manager per Reuters.

"We think there’s a reasonable chance that the Fed will have to bring the Fed Funds rate to 6%, and then keep it there for an extended period to slow the economy and get inflation down to near 2%," adds BlackRock’s Rieder.

The news also quotes Goldman Sachs as saying in a note on Tuesday that it had raised its forecast for the so-called terminal rate by 25 basis points to a range of 5.5%-5.75%.

Elsewhere, Jeffrey Gundlach, Wall Street's bond king and Founder and Chief Executive Officer of DoubleLine Capital, also backs the hawkish Fed bias by saying, “Fed is 'very likely' to hike rates by half point this month,” per CNBC.

Also read: Forex Today: Dollar bulls welcome hawkish Powell, volatility to stay