Dow gets 617 point Powell pop, best three days since 2016

U.S. stocks surged after Federal Reserve Chair Jerome Powell indicated that interest rate increases may be more measured moving forward.

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The Dow Jones Industrial Average jumped over 617 points, or 2.5 percent, registering the best three-day gain since 2016, with the addition of 111.22 points, or 4.22%, according to the Dow Jones Market Data Group. The S&P 500 and the Nasdaq Composite also jumped over 2 percent a piece.

Ticker Security Last Change %Chg I:DJI DOW JONES AVERAGES 25366.43 +617.70 +2.50% SP500 S&P 500 2743.79 +61.62 +2.30% I:COMP NASDAQ COMPOSITE INDEX 7291.5921 +208.89 +2.95%

“We know that moving too fast would risk shortening the expansion. We also know that moving too slowly – keeping interest rates too low for too long – could risk other distortions in the form of higher inflation or destabilizing financial imbalances. Our path of gradual increases has been designed to balance these two risks, both of which we must take seriously” said Powell in prepared remarks at the Economic Club of New York.

Powell also noted, “Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth” he said.

The equity rally follows months of Fed trash talking by President Trump, most recently on Tuesday.

“I’m doing deals, and I’m not being accommodated by the Fed,” Trump said during an interview with the Washington Post. “So far, I’m not even a little bit happy with my selection of Jay. Not even a little bit. And I’m not blaming anybody, but I’m just telling you I think that the Fed is way off-base with what they’re doing,” he added.

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