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.

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