Jerome Powell's testimony before House Financial Services Committee

Federal Reserve Chair Jerome Powell responded to US Congressmen's questions today in the House of Representatives after another session in the Senate yesterday, reiterating his belief that the economy is moving along in a stronger pace than before the financial crisis, while cautioning from long-term consequences to protectionist policies. 

As of 04:23 GMT, the dollar index rose 0.12% against a basket of major rivals to 95.10 from the opening of 94.98, with an intraday low at 94.96, and the highest since June 22 at 95.41. 

Powell reiterated the Fed's aim to bring monetary policies back to normal levels without hurting financial markets, asserting that policy decisions depend in the end on economic outlook. 

He believes that bringing the Fed's balance sheet back to normal levels would take 4 years, while noting that demand on the dollar has risen strongly in the last few years. 

Powell pointed to many companies that were hurt due to trade protectionism, however he said the US administration seeks lower tariffs in the longer term, so it might make sense pay a short-term price to achieve that. 

He finally warned from cryptocurrencies and their use in money laundering, dismissing them as failing to hold real value, while asserting the Federal Reserve doesn't intend to launch its own cryptocurrency, even though it will monitor the market closely. 

Powell presented the first half of his Congressional testimony before the Senate Banking Committee yesterday, 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

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.