Powell's speech hints at improving inflation, US stocks hit new highs

U.S. stocks hit record highs on June 13 as the Federal Reserve barely changed Wall Street's bet that it would cut interest rates at least twice this year, despite more conservative expectations from the central bank. The S & P 500 topped 5,400 for the first time, and by Wednesday, the bull market had been running for 20 months. "Recent inflation data has been more favorable than earlier in the year, and we have made modest further progress towards our inflation target," Fed Chairperson Jerome Powell said in a press conference. "We need to see more good data to bolster our confidence that inflation is continuing to move in the direction of 2 percent." TradeStation analyst David Russell said the Fed is holding its fire and they know things are improving, but there is no need to rush to cut rates. A strong economy allows Powell to squeeze inflation out of the economy without damaging jobs. The Goldilocks scenario is emerging - but policymakers don't want to derail it.