Markets Rally After New Interest Rate Forecast
The Dow Jones Industrial Average jumped more than 600 points yesterday after Federal Reserve Chairman Jerome Powell said interest rates were “just below” a growth-neutral level. The rally erased November’s losses as investors took his comments to mean an imminent rate hike was unlikely. Meanwhile, the S&P 500 climbed 61.62 points while the Nasdaq Composite jumped 208.89. Last month Powell — who’s been publicly criticized by President Trump — said rates were a “long way” from equilibrium. Those comments riled the market, where tech stocks in particular took a beating.