Wall Street rallied on Wednesday as investors digested Federal Reserve Chairman Jerome Powell’s comments on the US economy.

Powell stated that the “disinflationary process has begun” in the US economy, which sparked a rally in the markets. Despite the gains, trading remained choppy as investors weighed the implications of Powell’s comments.

The rally was further bolstered by comments from Federated Hermes’ Chief Investment Officer Stephen DeNichilo, who said that supply-driven inflation will be stickier than expected.

The positive sentiment in the markets comes after a tumultuous start to the year, with the Dow Jones Industrial Average dropping more than 4,000 points in the first two weeks of 2021.

However, investors are now optimistic that the economy is on the road to recovery, with the Dow rallying more than 2,000 points since the start of February.

The US economy is currently facing a number of challenges, including the ongoing coronavirus pandemic, but analysts are hopeful that Powell’s comments and the recent rally in the markets will help to ease investor concerns.

It remains to be seen whether the markets can sustain the recent gains, but for the moment investors seem to be optimistic that the US economy is on the right track.