US stocks climb in ‘relief rally’ as Fed’s assesses the economy can withstand multiple rate hikes
Scott Heins/Getty Images
- Stocks pushed higher Thursday after the Fed suggested three rate hikes are on tap in 2022.
- The pace of rate hikes indicates the economy is in shape to take on higher rates to tame inflation.
- The Bank of England surprised markets with an interest rate increase.
US stocks rose Thursday, with investor confidence boosted by the Federal Reserve’s view that the US economy is strong enough to handle three interest rate increases next year.
The S&P 500 headed back toward a record highs after the Fed on Wednesday signaled it may raise interest rates at least three times in 2022 to cool the hottest inflationary environment in nearly 40 years.
The Fed, led by Chairman Jerome Powell, in a statement said there are economic risks from new coronavirus variants. It also said it sees progress on vaccinations and an easing of supply constraints as supporting continued gains in economic activity.
Here’s where…
