Stocks Halt Five-Day Rout After Powell’s Remarks: Markets Wrap
- He says Fed will likely start shrinking balance sheet in 2022
- Fed will raise rates more if needed to curb prices: Powell
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Stocks climbed after Jerome Powell reassured investors that the Federal Reserve is going to tamp down inflation as the economy rebounds, while signaling the central bank will probably start shrinking its balance sheet in 2022.
The S&P 500 halted a five-day slide, the Nasdaq 100 outperformed major benchmarks and dollar fell. The Fed chief told the Senate Banking Committee that officials won’t hesitate to act if needed to contain price pressures. “If we have to raise interest rates more over time, we will,” he noted. Noting that the economy was in a much stronger position than the last time the central bank shrank its balance sheet, Powell said no decisions had been made, but it would be quicker this time around.