Fed Chair Jerome Powell is testifying before the Committee on Banking, Housing, and Urban Affairs of the US Senate alongside US Treasury Secretary Janet Yellen.

Key takeaways: 

"Higher prices are generally related to supply-demand issues."

"Also the case that price increases have spread more broadly."

"Risk of higher inflation has increased."

"It's a good time to retire 'transitory' for inflation."

Market Reaction

The US dollar, short-end and real US yields all popped higher in response to Powell's hawkish comment that it is time to retire the word "transitory" to describe inflation.