Wall Street edges up on renewed hopes for Fed rate cuts

Most US stock indexes rose on Friday as optimism over potential Federal Reserve rate cuts resurfaced.

John Williams, President of the New York Fed, said Friday that he expects the central bank will have more room to lower interest rates. The influential policymaker, speaking in Chile, noted that risks to the labor market now outweigh those related to inflation, echoing the stance of the more dovish members of the FOMC.

Williams said: “I see monetary policy as still moderately restrictive, though less so than before our recent actions. So I continue to see scope for an additional near-term adjustment to the target range for the federal funds rate to bring policy closer to neutral and maintain balance between our two goals.”

In trading, the Dow Jones Industrial Average rose 0.4% (185 points) to 45,937 as of 16:15 GMT. The broader S&P 500 added 0.1% (7 points) to 6,545, while the Nasdaq Composite gained 0.1% (38 points) to 22,040.