Fed minutes indicate risks from trade war; markets jump on hopes of interest rate cut
Stocks jumped to record highs Wednesday, after Federal Reserve Chair Jerome Powell’s comments seemed to strengthen expectations for monetary policy easing.
The latest minutes released from Federal Open Market Committee indicate their perception of trade uncertainty posing risks to their economic growth and inflation projections. Powell's comments indicate that trade tensions and concerns about the global economy have challenged the policymakers' outlook on the U.S. economy. In prepared testimony to the House Financial Services Committee, Powell said business investments in the nation have slowed “notably” recently against economic outlook uncertainties.
However, Powell also mentioned that the U.S. economy remains healthy.
According to the CME Group’s FedWatch tool, traders are anticipating a 100% probability of a Fed rate cut in July.
The S&P 500 briefly jumped above 3,000 for the first time. But later in the session it pared back its move to below 3,000, up 0.4%
