Some traders stuck with wagers on stubbornly high inflation after Wednesday’s Federal Reserve meeting, underlining a divergence in expectations between segments of the bond market and the U.S. central bank.
Stocks climbed to fresh records after Fed Chairman Jerome Powell’s press conference assured investors the central bank wouldn’t be overly aggressive with rate hikes, even as it laid out plans to end bond purchases by June. Mr. Powell said that the central bank believes inflation will dip by the second or third quarter of next year, as businesses increase the production of goods and supply-chain snarls ease.
