Jerome Powell's testimony before Senate Banking Committee

Federal Reserve Chair Jerome Powell presented the first half of his Congressional testimony before the Senate Banking Committee, where he expressed his belief that the job market will remain strong, while asserting that stress tests are important tools in gauging the strength of banks, with the Fed seeking to make the tests more transparent.

As of 03:47 GMT, the dollar index rose 0.47% against a basket of major rivals to 90.28 from the opening of 89.85, with an intraday low at 89.69, and a three-week high at 90.50. 

Powell believes inflation will hover around 2% for years to come, with higher food and energy prices boosting consumer prices, while noting that wages have taken an ascending path in recent years, with much more room for further growth. 

Powell warned that trade tariffs could hurt the economy in the long term, while tax cuts and government spending will serve to support growth and jobs. 

Finally, Powell believes that gradual rate hikes are the only method of maintaining economic recovery, adding that the goal now for the Federal Reserve it to bring the monetary policy back to normal pre-crisis levels.