Wall Street rallies as Fed's Powell nods to easing inflation after rate hike

• Published date: 02 February 2023
• Publication title: Malay Mail Online

The S and P 500 and the Nasdaq closed sharply higher yesterday after Federal Reserve chair Jerome Powell acknowledged that inflation was starting to ease, in remarks he made following a quarter-point rate hike by the US central bank.

Wall Street's major indexes had lost ground immediately after the Fed announced its rate hike decision. Its statement also said 'ongoing increases' to rates would be appropriate.

But the indexes bounced off their lows and kept gaining ground soon after Powell started speaking to reporters with the S and P ending up 1 per cent and the Nasdaq adding 2 per cent.

Investors were encouraged by Powell's answer to a question about easing financial conditions such as rising equities and falling bond yields in...