U.S. stocks ended Friday at new record levels after the Federal Reserve signaled it would move carefully on any additional interest-rate cuts. Investors took the message as support for a steady economic outlook, even as inflation remains above the central bank’s comfort zone.

The rally pushed major U.S. indexes to fresh closing highs, extending gains that have been built on expectations of a gradual easing cycle rather than aggressive policy moves. Traders appeared to welcome the Fed’s caution, which suggests policymakers are not rushing to cut rates while price pressures are still easing only slowly.

The central bank’s latest tone reflects a balancing act: keeping growth supported without allowing inflation to reaccelerate. While price data has cooled compared with earlier peaks, officials continue to describe inflation as still elevated enough to justify patience.

For markets, the combination of resilient earnings expectations and a measured policy path helped reinforce confidence into the end of the trading week. Still, the outlook remains tied to upcoming inflation reports and future Fed comments, which could reshape expectations for the pace of rate cuts this year.