Stocks bounced higher and Treasury yields fell sharply in afternoon trading Wednesday after the Federal Reserve indicated it might slow down the pace of its interest rate increases.
As expected, the central bank also announced its fourth straight extra-large rate increase of three-quarters of a percentage point as it fights the worst inflation in decades.
The Fed’s hint that it could ease back on the rate-increase program was welcome news for markets, which have been worried the recent pace of rate hikes could slow the economy so much that it goes into a recession.
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