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The only way is down for the Fed

Jay Powell, the Fed chairman, strongly signaled yesterday that the Fed could cut interest rates when it meets later this month, Jeanna Smialek and Matt Phillips of the NYT write.

• The Fed expects unemployment to stay low and inflation to gradually rise, Mr. Powell told the House Financial Services Committee.

• But he added that “uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.”

Investors saw the comments as a virtual guarantee of rate cuts. Stocks leapt yesterday, with the S&P 500 briefly trading above 3,000 for the first time. The index is up nearly 20 percent this year and is enjoying one of the longest bull markets on record.