FOMC Chairman Powell testimony: Baseline outlook for US economy remains favourable

In remarks prepared for delivery to the Joint Economic Committee of Congress on Wednesday, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, will reiterate that the baseline outlook for the US economy remains favourable and say that the monetary policy is likely to remain appropriate as long as incoming data broadly remains consistent with the Fed's economic outlook.

These remarks don't seem to be having a noticeable impact on the greenback's valuation with the US Dollar Index clinging to modest daily gains above the 98.30 mark. Below are some additional takeaways, per Reuters.

"If developments cause a material reassessment in the Fed's outlook, the central bank will respond accordingly."

"The Fed sees a sustained expansion of economic activity, strong labour market and inflation near symmetric 2% goal as most likely."

"Noteworthy risks to the US economic outlook remain."

"Sluggish economic growth abroad, trade developments pose ongoing risks."

"Persistent below-target inflation could lead to slide in longer-term inflation expectations."

"Level of vulnerabilities in the financial system at a moderate level."

"Investor appetite for risk elevated in some asset classes."

"Core of the financial sector appears resilient."

"Sustained expansion likely for the US economy."