Powell faced a number of questions on trade, with both Democratic and Republican senators seeking criticism of the Trump administration's policies of imposing punitive tariffs on billions of dollars in foreign imports.
Markets also responded to a second day of congressional testimony from US Federal Reserve Chairman Jerome Powell, whose upbeat remarks about the economy on Tuesday bolstered the dollar.
"Lots and lots of individual companies have been harmed by this".
Fed's Powell said; 'U.S. business contacts expressing rising chorus of concern on US trade policies; a more protectionist economy is less competitive and less productive; risk of tariffs is that businesses postpone investment; USA fiscal policy is on an unsustainable path; real wages have been somewhat slow in moving up; investment gains may take time to lift productivity'.
Powell did not address his individual views on the appropriate pace of tightening or whether he thinks, as some of his colleagues have argued, that the Fed should pause its rate hike cycle sometime next year if inflation remains under control.
"Our policies reflect the strong performance of the economy and are meant to help make sure that this trend continues", Powell said in his prepared testimony.
The benchmark six-month forward premium payable in November edged lower to 106.50-108.50 paise from 108.75-110.75 paise and the far-forward May 2019 contract also eased to 253.25-255.25 paise from 255.25-257.25 paise on Monday. In contrast, he said that nations that have taken a more protectionist direction have not fared as well.
Trade policy "has significant effects on the economy", Powell said, and "there is no precedent for this kind of broad trade discussion".Читайте также: Company's claim to have found gold-laden warship wreck causes market turbulence
Both the European Union and Japan have been hit with new United States tariffs despite their long-standing alliances with Washington.
The kiwi traded at 91.80 Australian cents from 91.73 cents yesterday. It fell to its weakest since April 9 at $902.97 on Wednesday.
Jerome Powell, chairman of the U.S. Federal Reserve, raised concerns about cryptocurrencies on Wednesday, saying they present serious risks to investors.
For the Pound, it's the start of 3 particularly important days on the data front, with this morning's stats including May's wage growth and unemployment numbers, together with June's claimant count change figures.
The US economy hasn't been this healthy since the financial crisis. "The line that Powell tried to walk seems at odds with the heightened uncertainty".
While there are consumer protection issues, Powell said the crypto market is relatively small to threaten financial stability, and therefore the United States central bank has no plans to bring cryptocurrencies under its jurisdiction.
"That is usually a recipe for a stronger dollar", said David Meger, director of metals trading at High Ridge Futures in Chicago.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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