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A much anticipated speech by the US Federal Reserve Chairman gave the markets something to be optimistic about on Thursday. Jerome Powell said Wednesday in New York that he felt the Fed's key rate was close to the neutral level; which marks a milestone in the comments made in recent months.
Last October, Powell said the United States was still "far from neutral" in terms of interest rates – indicating to markets at the time that further rate hikes were on the horizon. .
Following Powell's comments on Wednesday, Wall Street saw shares skyrocket. The Dow recorded its largest rally in eight months, closing more than 600 points. The Wall Street movement spurred the Asian markets, which rose on Thursday and created an optimistic sentiment for Europe.
Standing on news from central banks, the Bank of England said that a "messy" departure from the European Union would put the British economy under extreme pressure and could be more painful for the UK that has not been the global financial crisis.
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