Stocks Climb After Release Shows Fed's Plan

Central bank wants to raise interest rates quickly
By Newser Editors and Wire Services
Posted May 25, 2022 3:35 PM CDT
Stocks Post Rise After Interest Rate Reassurance
In this photo provided by the New York Stock Exchange, traders pause for a moment of silence on the floor before the opening bell Wednesday in remembrance of the victims of the Robb Elementary School shooting in Texas.   (Courtney Crow/New York Stock Exchange via AP)

(Newser) – Stocks rose broadly on Wall Street on Wednesday after the release of minutes from the Federal Reserve's most recent meeting indicated the central bank intends to move "expeditiously" to raise interest rates back to more neutral levels in its attempt to tame inflation. The S&P 500, the Dow Jones Industrial Average and the Nasdaq rose, the AP reports. Small-company stocks rose far more than the rest of the market, a sign of bullishness on the economy. Retailers had some of the strongest gains after getting beaten down in recent days over concerns that soaring inflation was eating into their profits.

The S&P 500's climb was 37.25 points, or 0.9%, to 3,978.73. The Dow rose 191.66 points, or 0.6%, to 32,120.28. And the Nasdaq rose 170.29 points, or 1.5%, to 11,434.74. The minutes show that most of the officials at the Fed meeting agreed that half-point increases to its benchmark short-term rate "would likely be appropriate" at the central bank's next two meetings, in June and July, per the AP. Such an increase would be double the usual hike. The Fed reiterated that its main goal is still reducing inflation, per Yahoo Finance.

(Read more stock market stories.)

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