US STOCKS-Wall St holds gains after Fed minutes
* FOMC minutes show Fed discussed policy exit strategy in April
* S&P 500 briefly hit session highs shortly after Fed minutes
* Tiffany shares rally after results (Updates with Fed minutes)
By Angela Moon
NEW YORK, May 21 (Reuters) - U.S. stocks rose on Wednesday, erasing the previous day's broad selloff, after minutes from the Federal Reserve's last meeting showed central bankers have discussed the eventual tightening of monetary policy but made no decisions on which tools to use.
Minutes of the session released on Wednesday said Fed staff presented several approaches to raising short-term interest rates, but said the discussion was simply "prudent planning" and not a sign rate hikes would come any time soon.
"The minutes are in line with what investors are thinking, which is that we see a rebound in growth but it is not to a point where the economy looks overly strong," said Robert Pavlik, chief market strategist at Banyan Partners LLC in New York.
The day's gains put the S&P 500 on track for its third advance in four days. The benchmark S&P index, however, is down about 1 percent from its record intraday high on May 13.
New York Federal Reserve President William Dudley said on Tuesday inflation should "drift upwards" towards the Fed's 2 percent goal, but a swift climb in inflation was unlikely. Philadelphia Fed President Charles Plosser said the $2.5 trillion in reserves accumulated by banks could trigger more rapid inflation. Continuación...