U.S. Federal Reserve Chairman Jerome Powell stressed Wednesday that the Fed may now have less work to do. During the press conference, Powell leaned towards a dovish stance as the banking crisis hit the markets, pushing gold prices up.

Since the collapse of the Silicon Valley Bank, the biggest change in the Fed's language has been the shift from expectations of continued rate hikes to additional policy tightening.

Powell said that instead of raising rates, the committee "now anticipate that some additional policy firming may be appropriate."

After the February FOMC meeting, economic indicators were stronger than expected. But events in the banking system automatically led to tighter credit conditions for households and businesses. This means an end to rate hikes.

Fed chair Powell explained that the recent events in the banking system will likely put pressure on economic activity, hiring, and inflation. And the scale of these effects remains unclear.

Powell spoke after the Fed decided to raise rates by a quarter of a point, marking its eighth increase in a year.