Wall Street stocks rose on Tuesday, and the Nasdaq Composite Index hit a new high because Federal Reserve Chairman Jay Powell said he would take a patient attitude and ultimately reduce the central bank’s monetary policy support.

After Powell testified before the Coronavirus Crisis Subcommittee selected by the House of Representatives, the blue-chip S&P 500 index closed up 0.5%. The Nasdaq index, which is dominated by technology stocks, rose 0.8% on the day.

Before Powell attended Congress, Fed officials last week advanced their predictions for the first interest rate hike after the pandemic to 2023 by a year-a shift that made the United States Stocks plummeted Fearing that the tightening of monetary policy might undermine the economic recovery, government bonds rose.

Powell adopted a dovish tone from the beginning, saying in his opening remarks statement The Fed will “do everything we can to support the economy, as long as the time required to complete the recovery.”

He later reiterated the central bank’s commitment to achieving an “inclusive recovery” to reflect the new monetary policy-making framework announced by the Federal Reserve last year.

“We will not raise interest rates preemptively because we think the employment rate is too high [or] Because we are worried about possible inflation,” he said in response to a question from South Carolina Democratic Rep. James Clayburn. “On the contrary, we will wait for actual evidence of actual inflation or other imbalances.

He added: “The entire political arena is becoming more aware that we need to achieve more inclusive prosperity.” “Compared to the high-income people, the actual income of the low-end people has stagnated. In the United States, cross-income Liquidity has declined and is now behind most other advanced economies. These things hinder us as an economy and a country.”

Investors are wary of more details on when and how the Fed will reduce the $120 billion monthly bond purchase plan that has boosted financial markets since March 2020.

Tancredi Cordero, chief executive of Kuros Associates, an investment consulting boutique, said that policymakers “do not want the market to think they will be more hawkish”, adding that “communication will be a challenge”.

Although Powell did acknowledge that rising inflationary pressures may be “more persistent” than previously expected, he emphasized the Fed’s view that higher consumer prices may fade over time.

Also on Tuesday, the U.S. dollar index, which measures currencies against other currencies, fell 0.2%, but the U.S. dollar remained near its highest level in two months, rising more than 2% this month.

The yield on the benchmark 10-year U.S. Treasury note fell 0.02 percentage points to 1.47%. The yield on the German equivalent of German government bonds rose by 0.01 percentage point to minus 0.16%.

The euro rose slightly against the dollar by 0.2% to 1.1942 US dollars, while the British pound rose 0.1% to 1.3948 US dollars.

Elsewhere in continental Europe, the Stoxx Europe 600 Index for the entire region rose 0.3%, and energy stocks topped the benchmark index. After Brent crude oil prices hit their highest level in more than two years this week, the European oil and gas sector rose 0.9%.

The global oil benchmark broke through US$75 per barrel for the first time since April 2019 on Tuesday, and then fell back to US$74.85 per barrel in the afternoon.

EU air travel has Reach nearly 50% It will reach pre-pandemic levels before the introduction of a pass that allows people who are vaccinated or coronavirus-negative to move freely on July 1.

Shaniel Ramjee, Pictet’s multi-asset investment manager, said of the summer tourism season: “This is the higher consumption part of the year.” “And the oil market has digested strong near-term demand, which is better than previously expected.”

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