Central Banks
Powell Vows Fed Not Done Hiking Rates, and Markets Rally Anyway
- Fed chair sees couple more increases and then rates on hold
- Officials slow hikes to quarter point, say inflation eased
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When Jerome Powell stepped up to the podium at 2:30 p.m., the Federal Reserve had just carried out its expected quarter-point interest-rate hike and markets had barely budged.
Forty-five minutes later, when the chair stopped speaking, stocks and Treasuries had taken off — even though he said interest rates would likely end up higher than investors expected and he pushed back on cuts that markets had priced in for this year.