Powell signals slowdown in pace of interest rate hikes from December

Markets lifted over comments

Valeria Martinez
clock • 2 min read

Federal Reserve chair Jay Powell has signalled that a slowdown in the pace of US interest rate rises could come as early as next month, powering a rally across Wall Street.

"The time for moderating the pace of rate increases may come as soon as the December meeting," he said in a speech at the Brookings Institution in Washington on Wednesday (30 November). In the Q&A after the speech, he said that himself and his colleagues "do not want to overtighten". This cemented Wall Street expectations the Fed will switch to a 0.5% raise at this month's meeting after four consecutive increases of 0.75%.  Markets surged on the back of Powell's remarks, with the Dow Jones Industrial Average finishing 2.2% higher and the S&P 500 rallying 3.1%.  'No big surprises' a...

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