Additional comments from Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, continue to cross the wires as he responds to questions from members of the Congress at the semi-annual monetary policy testimony before the Committee on Financial Services. Below are some key takeaways, per Reuters.
“Job gains just starting to reach people at margins of the labor force.”
“Lower inflation could work its way into lower short-term interest rates.”
“Fiscal policy is more powerful than monetary policy; monetary policy should not be the only game in town.”
“Interest on excess reserves is how we manage monetary policy.”
“Moving back to a system of managing rates with few bank reserves would be very difficult.”
The US Dollar Index is not paying any attention to these remarks and was last seen at 97.15, losing 0.35% on the day.