Below are the key takeaways from FOMC Chairman Jerome Powell's prepared statement for delivery at the Semi-annual Monetary Policy Report testimony before the US Senate Banking Committee.

Key quotes

"If totality of incoming data indicates faster tightening is warranted, we are prepared to increase pace of rate hikes."

"Ultimate level of interest rates likely to be higher than previously anticipated."

"Will continue to make our decisions meeting by meeting, based on totality of incoming data and implications for outlook for growth and inflation."

"Some of strength in overall January data likely reflects unseasonably warm weather."

"Little sign of disinflation so far in core services excluding housing."

"To get inflation back down to 2% need lower inflation in core services ex housing and very likely some softening in labor market."

"Ongoing increases in policy rate likely appropriate in order for stance to be sufficiently restrictive to get inflation back to 2% over time."

"Long way to go on getting inflation back down, road likely to be bumpy."

"We still stay the course until job is done."

Market reaction

The US Dollar Index shot higher with the initial reaction and was last seen rising 0.6% on the day at 104.92.