Jerome Powell's testimony before House Financial Services Committee

Federal Reserve Chair Jerome Powell testified on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC, where he said there has been no decisions so far on the the interest rate on excess reserves (IOER), noting that he expects the Fed's balance sheet to return to normal in three to five years. 

As of 07:01 GMT, the dollar index, tracking the greenback against a basket of major currencies, rose 0.47% to 90.28 from the opening of 89.85, with a three-week high at 90.50, and a session-low at 89.69. 

Powell dismissed concerns of a big recession for the time being, pointing to economic data as proof of the economy's strength and upward path of inflation and growth. 

Powell said the housing market is recovering gradually, noting that a drop in the unemployment rate to 4% indicates that the labor market is almost completely saturated. 

Powell asserted the risks of waiting too long before increasing interest rates, while expecting higher wages as the unemployment rate declines and the labor market tightens.