The S&P 500 broke 3,000 for the first time Wednesday morning ahead of an anticipated interest rate cut, before dropping back below the benchmark.
In prepared testimony before a House panel on Wednesday, Federal Reserve Chairman Jerome Powell seemed to suggest that the central bank would cut interest rates in the face of slowing global growth and increasing trade tensions.
{mosads}“Economic momentum appears to have slowed in some major foreign economies, and that weakness could affect the U.S. economy,” Powell said.
The outlook comes despite strong economic growth and low unemployment. In June, the economy saw the addition of an unexpectedly robust 224,000 new jobs.
President Trump has persistently heckled Powell over increasing rates and called for him to decrease them.
On Tuesday, top White House economic adviser Larry Kudlow dismissed the possibility that Trump would fire Powell, at least for the time being.
“There are no plans presently to change Mr. Powell’s job,” he said.