U.S. Stocks Rise to Record, Treasuries Gain on Fed: Markets Wrap
- Central bank cuts rates, signals no more moves likely
- Powell indicates bar for increase is steady 2% inflation
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U.S. stocks advanced to an all-time high after the Federal Reserve cut interest rates as expected and signaled it was unlikely to move in either direction any time soon as inflation remains muted. Treasuries extended gains and the dollar erased an advance.
The S&P 500 turned higher when Chairman Jerome Powell said rate hikes won’t occur as long as inflation remains persistently cool. That fueled a rally in Treasuries and sent the dollar lower. Prior to the comment, risk assets were under pressure after hawks saw a change in the policy statement’s language -- removing “act as appropriate” -- as signaling officials will not make any further cuts this year.