NEW YORK — Wall Street enjoyed a solid advance yesterday after the Federal Reserve raised short-term interest rates for the 10th time in more than a year but changed its policy statement to say longer-term inflation expectations are well contained.

While the Fed's statement signaled more increases are likely through the end of the year, the market interpreted the statement as a hoped-for sign the central bank's streak of rate increases may then be approaching an end.

Stocks bumped higher after the Fed's announcement, although investors had expected the rate increase to 3.5 percent, a four-year high. The Fed signaled that at least one more rate increase is coming, but many investors expect three more.

Wall Street was also soothed as crude oil futures fell to $63.07 a barrel, down 87 cents, on the New York Mercantile Exchange. Oil hit a record intraday high of $64.27 Monday after the announcement the U.S. embassy in Saudi Arabia would close for two days because of threats.

Investors also cheered Labor Department data showing productivity rose at a slower rate than in the first quarter. Labor costs also grew at a slower rate than the previous nine months.

The market's bounce may have just been a matter of timing, said Peter Martin, a senior at Prudential Equity Group. "We had three or four down sessions. We were due for a bounce. But when you look at the complexion, the volume, the advancers versus decliners, it's a positive day, but it's not a runaway day."

Advancing issues led decliners by roughly 3 to 2 on the New York Stock Exchange where consolidated volume came to 1.97 billion shares, up from 1.84 billion shares Monday.