Stocks Rally as Powell Sees Progress on Inflation: Markets Wrap
- The US central bank raised interest rates by 25 basis points
- Treasuries gained; dollar index slid to the lowest since April
This article is for subscribers only.
US stocks rose with Treasuries as Federal Reserve Chair Jerome Powell said the central bank has made progress in its battle against inflation, even as he warned that additional rate hikes are likely warranted.
The S&P 500 jumped more than 1% after Powell said the “disinflation process has started,” suggesting the aggressive tightening cycle is starting to have its desired effect of reducing the pace of price growth. The Nasdaq 100’s gains exceeded 2%.