Mr Powell has also stated that the extent of future rate hikes will be determined by economic statistics. He hinted that the Fed would not offer as much guidance about future rate hikes as it has up to this point in the year, instead opting for a “meeting-by-meeting” approach.
The two-year yield recently fell to 2.986%, from 3.041%. The 10-year yield recently fell to 2.734%, from 2.786%.
Yields rose somewhat after Mr Powell stated that the United States is not currently in a recession, noting the strength of the labour market.
Stocks rose after the Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point on Wednesday afternoon, as expected.
Indexes in the United States rose as a result of positive earnings reports. The S&P 500 was up nearly 2% while the tech-heavy Nasdaq Composite was up 3.47% and Dow Jones Industrial Average was up 1.19%.
Ten of the S&P 500’s 100 sectors were currently in the green, with communications services and information technology stocks leading the gainers.
In reaction, bank stocks rallied: all six major US banks were trading higher on Wednesday, with Citigroup up approximately 0.8%. None, though, surged as much as the S&P 500, which gained nearly 2%.
The Federal Reserve accelerated its efforts to reverse its easy-money policies by approving another unusually hefty interest rate hike and warning that more hikes were likely to follow to battle inflation, which is at a 40-year high.
Officials decided on Wednesday to raise their benchmark federal-funds rate by 0.75 percentage points, bringing it to a range of 2.25% to 2.5%. The 12-member rate-setting committee unanimously supported the rate hike.