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