The Federal Reserve raised its key interest rate by 75 basis points on Wednesday, but Chairman Powell said the move shouldn't be seen as a sign of high inflation.
The S&P 500 and the DJIA won for the first time in a long time. Retail sales fell in May as inflation increased.
It was the first three-quarter-point rate hike since 1994 when Alan Greenspan was chairman of the Federal Open Market Committee. The president of the Kansas City Fed preferred a 50 basis point increase.
Powell said during his press conference that he didn't expect the 75-basis-point increase to be common. A 50-basis-point or 75-basis-point increase seems most likely at our next meeting.
The US index was at 4:00 p.m.
Inflation rose to a 41-year high of 8.6% in May and the Fed raised its rate.
Barry Gilbert said in a note that the Fed needed to prove it was serious about fighting inflation with the rate hike. The more aggressive stance is still consistent with a softish landing for the economy.
The Fed may be able to back off from its forecast of a 3.4% benchmark rate at the end of the year, but for now the priority is showing resolve.
An anti-crisis tool is being prepared by the European Central Bank.
Russia's oil export revenue increased to a pre-war level of $20 billion in May as prices increased.
The price of oil was mixed. The price of West Texas Intermediate crude went down. The international benchmark was up 0.9%.
The price of gold rose to $1,842.40 per ounce. The yield went down to 3.34%.
The price of the digital currency was $22,014.01.
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