FOMC Chairman Jerome Powell testifies on the Semi-annual Monetary Policy Report before the US Senate Banking Committee.

Key quotes

"Hard to make case we have overtightened."

"We need to continue to tighten, we are very mindful of lags."

"We don't think we need a significant increase in the unemployment rate."

"But will need softening in labor market to get to 2%."

"Social costs of failure are very, very high."

"If inflation were to continue that would become the psychology."

"If we fail, it would mean an up and down economy."

"Capital allocation is also difficult in that type of world."

Market reaction

The US Dollar Index continues to push higher and was last seen rising 1.05% on the day at 105.38.