Stocks Jump on Bets Economy ‘Can Handle’ Fed Hikes: Markets Wrap
- Fed quickens taper, signals three 2022 interest-rate increases
- New projections show three hikes as appropriate in 2023
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Stocks rallied on speculation that the Federal Reserve will effectively combat surging prices without choking off economic growth.
The S&P 500 closed near its all-time high after initially dropping when the Fed statement came out. The Nasdaq 100 jumped almost 2.5%. Treasury yields rose, with money markets shifting to price in three quarter-point hikes by the end of 2022 as signaled by officials. The new forecasts also showed policy makers see another three rate increases in 2023 and two more in 2024.