Federal Reserve Chair indicated Wednesday that the central bank may be ready to begin cutting interest rates after inflation reached its lowest point in three years, sending stock markets sharply higher.
The Consumer Price Index rose just 2.4% year-over-year in November, down from a peak of 9.1% in June 2022, according to data released by the Bureau of Labor Statistics. The reading came in below analyst expectations and represented the most significant cooling in price pressures since the Fed began its aggressive rate-hiking campaign.
Markets responded enthusiastically to the data, with the S&P 500 climbing 1.8% and the Dow Jones Industrial Average gaining over 500 points in afternoon trading.