When the Federal Reserve drove its target interest rate near zero in late-2008, it sparked an economic debate about the risks of having nowhere lower to go, and in particular the financial bubbles it might stoke.

Wall Street had a renewed case of interest rate anxiety today, with stocks falling on strong US economic news and a jump in oil prices that heightened worries about inflation.

Interest rate concerns stifled Wall Street’s attempt to extend its rally today, even as the market drew support from upbeat reports on factory orders, housing demand and consumer confidence.

Wall Street had a surge of optimism today, sending stocks higher after investors interpreted a Federal Reserve report on the economy as a sign that the Fed’s year-long string of interest rate hikes may be nearing an end.