Wall Street just got a shot in the arm from the Federal Reserve.Stocks notched fresh highs — with the S&P briefly topping 3,000 for the first time ever — after the Fed signaled it’s poised to cut interest rates for the first time in more than a decade, citing worries over trade tensions and growth.

The Fed’s skittish outlook for the economy — which meanwhile downplayed the risks of inflation despite a strong job market — sent stocks roaring as it strengthened the central bank’s case to take action to prolong an 11-year expansion.

While the US economy has performed “reasonably well” this year, “crosscurrents, such as trade tensions and concerns about global growth, have been weighing on economic activity and the outlook,” Fed Chair Jerome Powell said in prepared remarks ahead of his two-day testimony before Congress.

Minutes from the Federal Open Market Committees June meeting — released Wednesday afternoon — likewise showed Fed participants acknowledged “uncertainties and downside risks surrounding the economic outlook had increased significantly over recent weeks.”

[Read more]