While testifying before the Senate Banking, Housing, & Urban Affairs Committee on Wednesday, FOMC Chairman Jerome Powell said that ongoing interest rate increases will be appropriate.

Key takeaways as summarized by Reuters

"Fed is strongly committed to bringing inflation back down, moving expeditiously to do so."

"Pace of future rate increases will continue to depend on incoming data and evolving economic outlook."

"We will make our decisions meeting by meeting."

"Essential that inflation be brought down if US Ii to have a sustained period of strong labor market conditions that benefit all Americans."

"Available data for May suggest core inflation likely held at April's 4.9% annual pace or eased slightly."

"Fed's overarching focus is returning inflation to 2% goal and keeping longer-run inflation expectations well-anchored."

"Inflation aggravated by longer-lasting supply chain constraints, russian invasion of ukraine; china covid lockdowns likely to exacerbate supply chain problems."

"Recent data suggest real GDP picked up in the current quarter, consumer spending remains strong."

"Growth in business fixed investment appears to be slowing, housing sector appears to be softening in part from higher mortgage rates."

"Tightening of financial conditions should continue to temper growth, help to balance demand and supply."

"Labor demand is very strong, while labor supply remains subdued, with the labor force participation rate little changed since January."

"In face of rapidly evolving economic environment, our policy has been adapting and it will continue to do so."

"Financial conditions have tightened 'significantly,' reflecting both actions taken so far and actions anticipated."

"Fed will continue to communicate its thinking as clearly as possible."

"Inflation has obviously surprised to the upside and further surprises could be in store; fed will need to be nimble in responding to incoming data and the evolving outlook."

"Economy is very strong and well-positioned to handle tighter monetary policy."

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its major rivals. As of writing, the US Dollar Index was down 0.1% on the day at 104.30.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD rebounds, steadies above 1.0400

EUR/USD rebounds, steadies above 1.0400

EUR/USD has staged a rebound and reclaimed 1.0400 during the American trading hours on Friday with the US Dollar Index retreating from the multi-week high it set at above 105.60. Nevertheless, the pair remains on track to close the week in negative territory. 


GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD reversed its direction and advanced to the 1.2050 area after having dropped to 1.1976 earlier in the day. The pair is still down more than 1% on the day with safe-haven flows dominating the financial markets following the disappointing PMI data from the US.


Gold rebounds above $1,800 as US yields fall sharply

Gold rebounds above $1,800 as US yields fall sharply

Gold has regained its traction and recovered above $1,800 after having slumped to a multi-month low below $1,790. Following the dismal PMI data from the US, the benchmark 10-year US Treasury bond yield is down more than 6% on the day, fueling XAU/USD's rebound.

Gold News

Why traders are rushing to exit positions on Cardano’s ADA price

Why traders are rushing to exit positions on Cardano’s ADA price

Cardano (ADA) price has had its performance review as the summer kicks off. ADA bulls are returning home with not-that-good a scorecard, and the underperformance could cut short holiday funding for the cryptocurrency.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!