Fed’s Powell: Inflation is more concerning than earlier this year

At a Senate Banking Committee hearing, Federal Reserve chair, Jerome Powell, said inflation is now more concerning than earlier this year. Speaking alongside Treasury Secretary Yellen, Powell said the test for raising rates is higher and explained that even with tapering, the Fed will continue to buy bonds until mid-2022.

Regarding the labor market, Powell sees still a long way toward maximum employment. He said they believe at the Fed, inflation will come down. According to him, supply-side restrictions are at the heart of inflation.

The US dollar is holding onto daily gains across the board. The DXY gains 0.30% at 93.70, on its way to the highest daily close since November.