By Ino.com
Stocks rose on Friday posting a winning week as Fed Chair Jerome Powell prepared the markets for the central bank to pull back on some of its monetary stimulus, saying it’s likely to start tapering its $120 billion in monthly bond purchases this year.
The DOW gained 241.69 points or +0.69%, to 35,454.81. The S&P 500 rose +0.88% to hit a new intraday high and closed at 4,509.37, and the NASDAQ added +1.23%, also hitting a new record during the session, closing at 15,129.50.
The three major indexes closed out the week in the green with the DOW finishing up +0.96%, while the S&P 500 added +1.52% and the NASDAQ gained +2.82%.
The 10-year Treasury yield, which ran up this week into the Powell speech, eased slightly after the Fed Chair’s remarks as he made clear that interest rate hikes would not immediately follow after tapering was over.
Free Reports:
“The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff, for which we have articulated a different and substantially more stringent test,” Powell said.
Powell also said inflation is solidly around the central bank’s 2% target rate, one of the goals of the Fed’s dual mandate. It has “much ground to cover” to reach its other goal of maximum employment, however, though there has “been clear progress” toward it, Powell added. The Fed has used the term “substantial further progress” as a benchmark for when it will start tightening policy.
Based on statements from other Fed officials, a tapering announcement could come as soon as the Fed’s Sept. 21-22 meeting.
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
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Source: Powell Prepares Markets For Bond Tapering
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