Fed Chairman Jerome Powell said Wednesday he still sees interest rate hikes ahead though he noted the “implications for the U.S. economy are highly uncertain” from the Ukraine war. Powell called the labor market “extremely tight” and said inflation has risen well above the Fed’s 2% target.

“The implications for the U.S. economy are highly uncertain, and we will be monitoring the situation closely,” Powell said. “The near-term effects on the U.S. economy of the invasion of Ukraine, the ongoing war, the sanctions, and of events to come, remain highly uncertain,” he added. “Making appropriate monetary policy in this environment requires a recognition that the economy evolves in unexpected ways. We will need to be nimble in responding to incoming data and the evolving outlook.”

His remarks were part of a series of scheduled appearances this week before House and Senate committees in Congress. Powell said he sees a number of quarter-percentage-point increases coming, though he left open the possibility of moving more aggressively should inflation persist.