Shares of private label food manufacturer TreeHouse Foods (NYSE: THS) rallied double digits on Friday, appreciating 10.5% as of 1:21 p.m. ET.

Today, Federal Reserve Chair Jay Powell appeared to hint at interest rate cuts in the months ahead. The prospect of rate cuts led to a bout of buying and short covering in many rate-dependent stocks. As a highly indebted name, TreeHouse was no exception.

At the end of the pandemic, inflation jumped and the Federal Reserve hiked interest rates at the fastest pace in history. But while the Fed began cutting the federal funds rate last year, the last rate cut was in December. Since then, inflation has remained stubbornly above the Fed's target, causing the central bank to pause those cuts while keeping the funds rate "moderately restrictive" at 4.5%.

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Source Fool.com