Fed Chair Jerome Powell: Economy is doing very well

Federal Reserve Chair Jerome Powell said in an interview with Marketplace radio station that US economy is doing well, pointing however to modestly higher wages last week, while productivity remains very low, with labor shortages persisting in many sectors. 

Powell said the Fed doesn't have a solution to the slow growth in wages, but noted that wages are indeed growing to some degree and the economy is presenting "very good" performance, with inflation rising to 2% recently in a way that allows for gradual rate hikes. 

As of 07:40 GMT, the dollar index, tracking the greenback against a basket of major rivals, rose 0.08% to 94.80 from the opening of 94.72, with an intraday low at 94.64, and the highest since July 3 at 94.94. 

Powell said Fed's policy makers are hearing concerns about the change in US trade policies, adding it's hard to predict the results of trade decisions, but expecting recent tax cuts to support economic activity in the US in the next two years.