The Federal Reserve raised interest rates for the first time in over two decades on Wednesday, stepping up its fight against high inflation.
A quarter-point increase in March was followed by a half-point hike in April. The Fed's policies of easy money throughout the pandemic have been reversed.
"We recognise the hardships caused by excessive inflation," said Fed Chairman Jerome Powell. "And we're working quickly to bring it down."
Powell said he and his colleagues would consider two additional half-point rate increases at their June and July meetings, continuing a campaign with high economic stakes.
But Powell assured investors that the Fed would not raise rates more than half a percentage point at a time.
The Dow gained over 900 points, while the S&P 500 and the Nasdaq both gained around 3%.
According to the Fed's preferred inflation measure, consumer prices rose 6.6% in March. It's the biggest jump since 1982. Prices rose 5.2% excluding volatile food and energy costs.