Last week, the Labor Department reported stronger-than-expected job growth in June.
The dollar was steady on Friday, having regained some traction against its peers after stronger-than-expected US inflation data tempered the prospect of an aggressive Federal Reserve interest rate cut later this month.
Stock indexes jumped by more than half a percentage point in the opening minutes of trading on the prospects that the Fed will cut rates for the first time since the Great Recession.More news: Black Caucus Member Charges AOC With Using the Race Card
Mr Powell, in written testimony ahead of his appearance at the House of Representatives Financial Services Committee, said he expected continued U.S. growth.
"The trade war with China is a major factor and if there is an agreement in the short term the central bank could leave it at one and done for the year". The Federal Reserve Act allows for Fed governors to be removed - but only "for cause" and not policy differences.
On the topic of cryptocurrencies - which was briefly addressed during the testimony, Powell notably said that a system of cryptocurrency that achieves widespread adoption could diminish, or remove, the need for a federal reserve currency, adding that widespread adoption hasn't been seen quite yet.
- United States dollars supported by inflation surprise but data won't prevent Fed cuts. Waters asked Powell on Wednesday. The chart below showcases the difference in borrowing costs - the spreads - for the June 19/December 19 (orange) and June 19/June 20 (blue) periods in order to gauge where interest rates are headed by the end of December 2019 and the end of June 2020, respectively. The Fed has raised rates nine times since 2015, four increases coming under Powell's leadership.
It's worth repeating an observation from three weeks ago.More news: Divock Origi signs new long-term deal at Liverpool
Investors expect the Fed will cut its benchmark rate, now in a range between 2.25% and 2.5%, by a quarter percentage point at its 30-31 July meeting.
The Dollar drew support Thursday from official figures that showed inflation rising faster than was expected during June, potentially leading some investors to conclude that elevated consumer price pressures could prevent the Federal Reserve (Fed) from cutting its interest rate as much as markets expect.
"We've agreed to begin discussions again with China".
In afternoon trading, the dollar index was slightly lower at 97.06.DXY, after earlier falling to a one-week low. The US Dollar's near-term bias is neutral until more technical clarity is achieved; the budding bullish momentum appears to have been stopped in its tracks today.More news: R. Kelly arrested on federal child pornography charges: USA attorney