Equity Markets Rallied After Jerome Powell's Comments

Forex News

Markets are trading on a more upbeat note after yesterday’s rally, although US futures pointed to a lower open. Yesterday’s comments of the Fed Chairman Jerome Powell caused fall of the US dollar, giving boost to the stock markets.

US Federal Reserve Chairman Jerome Powell said interest rates are “just below neutral,” signaling a potential end of the bank’s cycle of rate hike. Powell said on Wednesday that the Fed’s interest rate of 2 to 2.5% was just below the neutral level. As recently as October, however, Powell had said the rate was “a long way” from neutral.

After Federal Reserve Chairman Jerome Powell suggested the central bank may be nearing an end to its rate tightening cycle, investors are now looking ahead to minutes of the Fed's latest meeting for further evidence on whether it has pivoted to a more dovish stance on policy. A fourth rate hike for this year is expected in December, but it remains unclear yet.