Wall Street soared Friday, resuming this week's rally after Federal Reserve Chairman Ben Bernanke gave investors more reason to believe further interest rate cuts are on the way, according to Associated Press. The Dow Jones industrial average rose more than 150 pointsin the first few minutes of trading. In a speech late Thursday, Bernanke said persistently tight credit conditions, the housing slump and high energy prices will probably create some «headwinds for the consumer in the months ahead.» Although he expects the U.S. will avoid a recession, Bernanke said he believes consumers could become more cautious. The U.S. central bank will have to be «exceptionally alert and flexible,» Bernanke said, echoing comments by Fed Vice Chairman Donald Kohn earlier in the week that helped Wall Street recover some of its recent steep losses. Investors appeared to read the phrase as a sign the Fed is willing to lower interest rates again, after cutting rates at the past two meetings.
