Stocks rise, yields and dollar fall after Fed cuts interest rates

By Caroline Valetkevitch

NEW YORK, Dec 10 (Reuters) – Major stock indexes jumped while U.S. Treasury yields declined on Wednesday after the Federal Reserve cut interest rates as expected and investors remained hopeful about further cuts ahead, even as the central bank signaled it will likely pause reductions for now.

The U.S. dollar was lower against major currencies.

The U.S. central bank cut rates by a quarter percentage point, ‍and projections issued after its two-day meeting showed the median policymaker sees just one quarter-percentage-point cut in 2026, the same outlook as in September.

In his press conference after the announcement, Fed Chair Jerome Powell declined to provide guidance on whether another interest rate cut lies in the near future. However, he said the U.S. labor m