Stocks Get Relief Rally in Best Fed Day Since July: Markets Wrap
- Fed holds rates, sees slower growth and higher inflation
- Fed to slow balance-sheet runoff pace amid debt-cap impasse
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Stocks climbed and bond yields fell as Jerome Powell calmed tariff-obsessed investors, signaling the Federal Reserve saw no need for drastic action in the face of Donald Trump’s trade war.
After central bankers held monetary policy steady, as expected, Powell was measured in his assessment of how the president’s actions might shape the economy, citing the potential for the impact of tariffs on inflation to be “transitory.” The jump in stocks, the biggest for any Fed day since July, follows a bruising four-week stretch in which the S&P 500 slid into a correction. Treasuries saw an abrupt reversal, with two-year yields sinking below 4%.