Why a group of dots sent sharemarkets surging

Champagne corks were popping on Wall Street after the US Federal Reserve Board gave the clearest signal yet that it believes that it has tamed inflation and has laid the foundations for several rate cuts next year. The Dow Jones index hit record levels in a sharemarket that is now at its highest levels since the very end of 2021 while bond yields tumbled after the Fed ended its third consecutive meeting where its policy rate has been left unchanged . Wall Street surged overnight after the Fed’s latest statement. Credit: AP It wasn’t the fact that the target range for the federal funds rate (the equivalent of the Reserve Bank’s cash…