Fed's Powell: I expect gradual interest rate hikes to continue
Following his prepared speech before the Committee on Banking, Housing, and Urban Affairs, Fed Governor and future Chairman Jerome Powell is responding to questions from committee members, with key quotes (via Reuters & LiveSquawk) found below.
Strong economic growth warrants gradual rate hikes.
Higher rates are ‘on the way’, expected to help savers.
Market hasn’t reacted to shrinkage of balance sheet.
Fed doesn’t know were exactly’ balance sheet will end up.
US Dollar advances beyond 93.00, 3-day tops.
The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main rival currencies, has recovered the 93.00 handle and beyond, clinching at the same time fresh 3-day peaks.
USD/JPY eyes 111.50 on US data.
The greenback is now accelerating the upside vs. its Japanese counterpart, lifting USD/JPY to the area of daily highs in the mid-111.00s.
About Jerome Powell (via federalreserve.gov)
Jerome H. Powell took office as a member of the Board of Governors of the Federal Reserve System on May 25, 2012, to fill an unexpired term. He was reappointed and sworn in on June 16, 2014, for a term ending January 31, 2028.
Prior to his appointment to the Board, Mr. Powell was a visiting scholar at the Bipartisan Policy Center in Washington, D.C., where he focused on federal and state fiscal issues. From 1997 through 2005, Mr. Powell was a partner at The Carlyle Group.