Wall Street Higher After Powell’s Speech in Jackson Hole

Wall Street rallied on Friday, with the S&P 500 and the Nasdaq hitting all-time highs, after Federal Reserve Chair Jerome Powell said the central bank’s current approach to interest rate hikes was the best way to protect the U.S. economic recovery.

Gradual rate hikes are also the best way to keep job growth as strong as possible and inflation under control, Powell said. His comments did little to change market expectations of a rate hike in September and perhaps again in December.

“The Fed is very confident in the U.S. economy, and Powell is indicating the Fed has no intention of slowing down rate hikes and it appears they are going to be looking past trade concerns for now,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza