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.
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