Global stocks rally on Fed nominee Powell’s testimony
Everything followed the S&P higher Tuesday, including Asia (which isn't trading)
Both the Dow and the S&P 500 are on track to close at record highs, after Trump’s nominee to succeed Janet Yellen as Federal Reserve chair, Jerome Powell, gave testimony to the US Senate on Tuesday.
Powell indicated he would be following largely the same path to monetary policy normalization laid out by the Fed thus far.
While reiterating expectations that interest rates will rise somewhat further and that the bank’s balance sheet will gradually shrink, Powell was careful to walk the line between dove and hawk, the Street reports.
“While we endeavor to make the path of policy as predictable as possible, the future cannot be known with certainty. We must retain the flexibility to adjust our policies in response to economic developments,” he was quoted as saying.
The market reaction was in stark contrast to the tepid response to the announcement of his nomination earlier this month.