US shares rallied on Wednesday as the Federal Reserve chairman Jerome Powell signalled a move towards cutting interest rates, in a “weak(er) dollar” policy that could boost exports.

US interest rates currently stand between 2.25% and 2.50%.

The benchmark S&P 500 surged past 3,000 points while the Dow Jones and Nasdaq rose almost 1%.

Although Powell told the House of Representatives Financial Services Committee that he expects continued US growth, he warned that weaker growth of other trading partners and a downturn in business investment would inevitably affect the US outlook.

Powell has not committed to lower rates but his reference to below-target inflation points to that direction. A binding decision is expected on July 31st.

US Treasuries currently yield higher than Greece, after the European Central Bank (ECB) has signalled the second wave of quantitative easing given a slowdown in Europe’s export-driven economy. On Monday Greece’s benchmark 10-year bond yield briefly touched 2.01%, slightly lower than equivalent US Treasuries.