The Dow Jones Index surged more than 200 points

[DannCarl49]

The Dow Jones Index surged more than 200 points today even as Federal Reserve Chairman Jerome Powell signaled he would continue raising interest rates to stem inflation.

the Dow Jones Industrial Average was at 36,165.12 points, up 214.23 points or 0.6%.

Investors put their weight in forecasting that The Fed will cut interest rates at the earliest at its March 2024 meeting. After the disclosure of the Personal Consumption Expenditure (PCE) price index that slowed from September.

The latest CME Group's FedWatch Tool indicates that investors expect the Fed to maintain interest rates at 5.25-5.50% at their December 2023 and January 2024 meetings, while giving 53.7% weight to the Fed's cut. Interest rate 0.25% to 5.00-5.25% at the March 2024 meeting.

Such predictions are made. Although Mr. Powell said today that It is still too early for the Fed to declare victory over inflation.

“It is too early for us to conclude with any confidence that we have reached a position of sufficiently stringent policy. Or to make predictions about when monetary policy will be relaxed? We are prepared to continue implementing strict policies. If it's the right thing to do Until we are confident that inflation will return to 2%,” Powell said at a conference in Atlanta.

Mr. Powell said Although inflation has decreased recently But it is still above the Fed's target of 2%.

In addition, Mr. Powell stated that The Fed will not pre-determine policy direction. And decisions at each meeting will be based on the information the Fed receives. and indicators for trends in economic activity and inflation. including maintaining a balance of risks

[juju]

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