FED stalls December rate hike, US stocks surge
by SOURAV D | VIEW 1610
The Federal Reserve Chairman Jerome Power, simply boosted the US stock market on Wednesday, when he mentioned that the policy rate is now “just below” the estimated level of central bank. The comment has triggered a massive response in the stock market and wall street simply jolted upwards, just after the comment had been made.
As Trump has been criticizing the rate hikes of FED, many took this comment as a signal to a closure to FED’s three years of tightening cycle, which would certainly distract and dwindle the currency, yet the stocks upsurge would continue.
Just after the comment has been made, as the Wall street jumpstarted, the S&P500 and Dow Jones Industrial Average had posted their biggest percentage of gains in eight months, while Nasdaq experienced its largest advance in just over a month.
During the speech in the Economic club of New York, the FED chair Powel said, “There was a great deal to like,” about the US prospects. “Our gradual pace of raising interest rates has been an exercise in balancing risk," he added.
Since a shift in the FED monetary policy has been rocked the stock the market on Wednesday, the upbeat momentum is expected to last for the next couple of days and it is certainly a welcome news for the investors.