U.S. stocks closer higher amid Fed's signals of gentler monetary policy

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"We will be patient as we watch to see how the economy evolves", Powell said.

The Dow Jones Industrial Average exploded by as much as 700 points after Federal Reserve Chairman Jerome Powell reassured investors that the central bank would pay attention to market conditions before implementing interest rate hikes.

The December job report also indicated that unemployment rate was up 0.2 percentage point month-on-month to 3.9 percent, and that average hourly earnings for all employees on private nonfarm payrolls rose 11 cents, or 0.4 percent over November, to 27.48 USA dollars.

Nonfarm payroll jobs climbed by 312,000 in December, and unemployment climbed 0.2 percent to 3.9 percent, which is still lower than the 4.1 percent unemployment rate the Bureau reported last December.

"I found it actually quite surprising how benign markets were for such a long time, despite the risks of trade wars and other things that were going on", Bernanke said in an observation that's shared privately by some Fed officials.

"We don't expect that this will be the end to the volatility", she said. Under the law that governs the Federal Reserve, a president can only remove a Fed chairman for cause.

Larry Kudlow, director of the White House National Economic Council, told Bloomberg TV on Friday a meeting between the two men hasn't yet been set.

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The tech-heavy Cheddar 50 Index, which measures the performance of Cheddar's 50 top companies ー from Apple ($AAPL) to GM ($GM) ー gained 5.4 percent on Friday, amid broader market gains.

When asked whether he would comply with a resignation request by Trump, Powell said, "No". Strong resistance can be seen at 108.45 (50% retracement level), an upside break can trigger rise towards 109.94 (Oct 3rd high).On the downside, immediate support is seen at 108.00 (Psychological level), a break below could take the pair towards 107.44 (23.6% retracement).

Hopes for progress in the U.S.

"The markets are feeling better that the Fed is not strangling the overall economy and perhaps forcing it into a recession, and that removes a monetary policy concern that has been hanging over the market for the past few months", said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC. The Fed said in December it anticipated raising rates twice in 2019.

But the report could show signs of where things are headed for 2019 in America amid continued trade uncertainty and as tax cut effects wear off.

The Fed's tightening cycle includes both rate hikes and the gradual shedding of its more than $4 trillion (3 trillion pounds) in assets. Echoing that assertion, the central banker said at the Atlanta event that the Fed was ready to change course "significantly if necessary".

Mr Powell said he thought the recent market declines reflected concerns about slowing global growth and trade tensions - but are "well ahead of the data". Articles appear on euronews.com for a limited time.