The Dow Jones Industrial Average and Nasdaq composites ended Wednesday on a high note after Federal Reserve Chair Jerome Powell signaled that interest rate cuts are probably coming this year. The Dow closed up 0.2%, while the Nasdaq closed at 0.6% higher.
Powell spoke on Wednesday before the House Financial Services Committee, saying that he believes the Fed’s policy rate is at its apex and it will cut back on interest rates in 2024. However, he hedged his comments by noting that the economic forecast is still uncertain.
San Francisco Fed President Mary Daly said that although the Fed policy is in a good place, keeping interest rates high for too long could be detrimental to the economy. Later, however, Minneapolis Fed President Neel Kashkari said he wouldn’t rule out any additional interest rate increases.
“If inflation starts to flare back up again, that could justify us going and raising rates further from here,” he said.
