© Michael Brochstein
Buildings in Washington, DC
(AP) — Stocks bounced higher and Treasury yields fell sharply after the Federal Reserve indicated it might slow down the pace of its interest rate increases.
The Fed 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 Wednesday that it could ease back on the rate-increase program was welcome news for markets, which have been worried the Fed could slow the economy so much that it goes into a recession.
The yield on the two-year Treasury fell sharply and the S&P 500 erased a loss and rose 0.6%.
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