Stocks climb after Fed says rates may stay low for longer

Associated Press | Thursday, August 27, 2020 3:46 p.m.

Marble sculptures occupy the pediment above the New York Stock Exchange signage.

NEW YORK — Stocks edged further into record heights on Wall Street Thursday after the Federal Reserve made a major overhaul to its strategy, one that could keep interest rates low for longer.

The S&P 500 rose 0.2% after earlier veering through a jumbled day of trading.

Prices for stocks, bonds and gold made several U-turns after Fed Chair Jerome Powell gave a highly anticipated speech, where he essentially said the Fed may continue efforts to prop up the economy even if inflation rises above its target level of 2%, as long as it had been weak before then.

Long-term Treasury yields rose.