US and European stock markets rose Wednesday and gold hit a record high as the Federal Reserve kept alive expectations of rate cuts later this year and the British government unveiled a pro-growth budget. In volatile trading, gold exceeded its previous high of $2,141.79 as expectations of lower interest rates hurt the dollar. US stocks had slipped earlier this week as investors locked in profits ahead of Wednesday’s congressional testimony of Fed chief Jerome Powell. Powell said in prepared remarks that “if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.” But he did add that bringing down inflation was “not assured.” That was enough to give market participants hope that the central bank could start reducing interest rates in June, though it appeared to rule out a cut at March’s policy making committee. All three major US indices climbed to end the day, even though there were also concerns surrounding embattled lender New York Community Bancorp, which announced Wednesday that it has lined up more than $1 billion from investors led by the firm of former US treasury secretary Steven Mnuchin. The market was “not shaken” by Powell’s comments, said Steve Sosnick of Interactive Brokers. While traders were nervous ahead of the Fed chief’s testimony, his remarks were “pretty close” to those after the most recent Fed meeting, he added. More indications about the interest rate outlook will come Friday with the release of non-farm payrolls. Joe Mazzola, an analyst at Charles Schwab, said regardless of the rate outlook, stocks appear well supported. On Tuesday, “the last half hour featured a comeback, which suggests there’s buying interest near the lows and potentially puts things on more solid footing,” he said. “The market builds in strong chances of a first rate cut by June or July.”