FOMC Chairman Jerome Powell is testifying before the House Financial Services Committee on "Monetary Policy and the State of the Economy."

Key takeaways

"As economy returns to normal, we expect profit margins to also normalize."

"We have unconditional commitment to fighting inflation."

"Labor market is unsustainably hot."

"We need sustained period of maximum employment and bringing down inflation is necessary to do that."

"Significantly more challenging to bring down inflation without impacting the labor market."

"Effects of shrinking balance sheet will be marginal compared to impact of rising interest rates."

Market reaction

The greenback stays relatively resilient against its rivals after these comments and the US Dollar Index was last seen rising 0.13% on the day at 104.32.