YA THINK? Fed may need to accelerate rate hikes, Jerome Powell says.

Powell’s comments raise the possibility that the Fed will increase its key interest rate by a half-percentage point at its next meeting March 21-22, after having carried out a quarter-point hike in early February. Over the past year, the central bank has raised its key rate — which affects many consumer and business loans — eight times.

“This statement opens the door to a return to 50bp hikes at the March meeting and potentially beyond if the data flow confirms the re-acceleration in both the labor market and inflation, which both surprised to the upside in January,” noted Morgan Stanley analysts in a Tuesday research note.

The prospect of bigger-than-expected interest rate hikes caused U.S. markets to tumble on Tuesday, with the Dow slumping 0.9% to 33,120 and the S&P 500 shedding 1% in late morning trading.

It’s going to be painful, but we have a dismal 1981 inflation rate (properly figured) and a good-times 1995 Federal funds rate. Something’s gotta give.