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* Powell says economy 'a ways off' from bond taper
* BofA slips as low interest rates hurt lending business
* American Airlines, Delta Air up on positive forecast
* Futures up: Dow 0.24%, S&P 0.37%, Nasdaq 0.66% (Adds comment, details; updates prices)
By Devik Jain and Shreyashi Sanyal
July 14 (Reuters) - Wall Street's main indexes were set to rise on Wednesday after comments from the Federal Reserve fueled hopes the central bank would stick to its accommodative monetary policy despite a sharp jump in inflation last month.
Fed Chair Jerome Powell reassured investors that the U.S. job market "is still a ways off" from the progress the central bank wants to see before reducing its support for the economy, and current high inflation will ease "in coming months," in comments prepared for delivery at a congressional hearing on Wednesday.
Data on Wednesday showed U.S. producer prices increased more than expected in June, a day after a reading showed U.S. consumer prices rose by the most in 13 years last month.
Trading on Wall Street has been dictated by rising inflation in the past few weeks, with investors fearing that the double whammy from a possible hawkish shift by the Federal Reserve and a spike in coronavirus infections could knock U.S. equities off record highs.
Growth-linked stocks including Apple Inc, Microsoft Corp, Amazon.com Inc and Facebook Inc rose between 0.6% and 1.8%, leading gains in premarket trading. Also boosting Apple shares was an addition to J.P. Morgan's "analyst focus list" and a price target hike.
"The big thing that I have noticed is that there has been rotation back in to large growth, and away from value and some of it has to do with the fact that interest rates have dropped," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
Strong earnings from JPMorgan Chase & Co and Goldman Sachs Group Inc kicked off the quarterly reporting season on Tuesday.
In line with its peers, Bank of America Corp reported a jump in second-quarter profit, but its mainstay lending business took a hit from low interest rates, sending its shares down 1.7% before the opening bell.
Wells Fargo gained 0.3%, while Citigroup Inc edged 1.6% higher as the lenders beat quarterly profit estimates on reserve release boost.
American Airlines added 3.3% after it forecast positive cash flow in the second quarter for the first time since the pandemic began, while Delta Air Lines rose 1.4% after it reported upbeat second-quarter results.
Analysts expect 66% growth in profits during the second quarter for S&P 500 companies, compared to a 30.6% decline in profit growth during the second quarter of 2020, according to IBES estimate data from Refinitiv.
At 8:51 a.m. ET, Dow e-minis were up 85 points, or 0.24% S&P 500 e-minis were up 16.25 points, or 0.37%. Nasdaq 100 e-minis were up 98.25 points, or 0.66%.
Peloton Interactive slipped 2.8% after Wedbush downgraded the interactive fitness products maker's stock to "neutral" from "outperform". (Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel)