Wall Street turned a blind eye on Jerome Powell’s attempt to curb bets on rate cuts, with stocks and bonds climbing on speculation the Federal Reserve will stay put this month and ease policy in 2024.
While the Fed chief said officials are ready to hike further if needed, he also noted policy is “well into restrictive territory.” Two-year yields sank 13 basis points to 4.55%. The S&P 500 hit the highest since March 2022 — up a fifth straight week. The dollar slid. Trader bets on a quarter-point Fed cut in March have risen, with swaps fully pricing in a reduction in May. They project over a full point of easing by December 2024.