Powell said while the central bank may raise rates this year to curb inflation, it expects inflation to peak by mid-2022. There was no indication that the Fed would rate hikes as soon as March, or that he would raise rates four times.
London's FTSE 100 rose on Wednesday morning as a result, gaining 0.8%. Sentiment was also lifted by positive earnings updates. Supermarket group Sainsbury's, fashion retailer JD Sports Fashion and recruiter PageGroup gained between 1% and 3% after raising their full-year profit guidance. Miners and energy stocks were also among the top gainers.
However, food delivery company Just Eat Takeaway.com dropped 2.4% as its results, although showing 14% growth, were not good enough for investors.
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