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Stock Bulls Get Reprieve as Powell Signals a Limit to Austerity

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WATCH: Federal Reserve Chair Jerome Powell says a 75-basis-point rate hike is not under active review. Source: Bloomberg
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Under no pressure to throw investors a bone, Jerome Powell nevertheless did, igniting the biggest stock market rally on the day of a Federal Reserve meeting in a decade.

All it took was a few phrases in a day otherwise rife with hawkish pronouncements from a central bank bent on subduing the hottest inflation in 40 years. While stocks initially wobbled on confirmation the Fed had pushed up interest rates by 50 basis points, the S&P 500 took off when Powell said an even bigger increase is “not something that the committee is actively considering” for coming meetings.