Fed “cementing ‘Powell put’” with new policy framework

Markets were mixed on Thursday.

The S&P 500 rose 0.2 percent but the STOXX Europe 600 fell 0.6 percent.

Earlier in Asia, the Shanghai Composite rose 0.6 percent but the Nikkei 225 fell 0.4 percent.

US stocks were boosted by the announcement of a new Federal Reserve policy framework that would allow inflation to run above 2 percent for some period of time.

“Fed Chair Powell put investors on roller-coaster ride after unveiling a new policy framework of average inflation targeting, cementing the ‘Powell put’ of keeping interest rates anchored for years,” wrote Edward Moya, senior market analyst at Oanda in a note.

In economic news, China reported that profits in the industrial sector grew 19.6 percent in July from the previous year, an increase from the 11.5 percent gain in June.