- Fed Chair Jerome Powell indicated the central bank is on track to raise interest rates by a half percentage point in December.
That would be a step back from a series of four 0.75-point rate rises in recent months. Speaking at a Brookings Institution event, Powell pointed to signs of progress against inflation, including a slowdown in the housing market and improving supply-chain conditions, but said declines in goods prices and rents might not be enough if companies don’t slow hiring. U.S. stocks rallied as Powell spoke, lifting the S&P 500 3.1% and the Nasdaq Composite 4.4 % for the day. The Dow Jones Industrial Average rose 2.2% into a new bull market.