NEW YORK (AP) — U.S. stocks rallied after the Federal Reserve indicated it may not need to pump the brakes any harder on Wall Street and the economy.

The S&P 500 rose 1.1% Wednesday. The Dow gained 221 points, and the Nasdaq composite jumped 1.6%.

Treasury yields also eased in the bond market after the Fed announced its decision to hold interest rates steady, as expected.

The Fed hinted that a swift rise since the summer in Treasury yields, and the resulting tumble in stock prices, may be slowing inflation on their own and acting like rate-hike substitutes.