NEW YORK–Wall Street extended its gains on Nov. 28 after Federal Reserve Chairman Jerome Powell said the central bank’s policy rate was “just below” neutral, hinting at a potential moderation in the pace of policy tightening.
Stocks and interest-rate futures jumped in response. The comments were a reversal from early last month, when Powell had said rates were probably still a “long way” from a so-called neutral level and the Fed may even go beyond that level. Those remarks sent stocks down as investors bet the Fed would need more rate hikes to prevent the economy from overheating.
