Fed’s Powell LIVE testimony to Congress: inflation will move up in 2018, stabilize at committee's 2% target

New Fed Chair Jay Powell's testimony to Congress suggests ongoing gradual policy tightening, but there are hints of upside risks for rates. He has started the take Q&A in session with Congress, but here are some of the key headlines from the text that was released earlier.

• Some headwinds facing the US economy are now tailwinds.
• Financial conditions accommodative despite volatility.
• Must strike balance to avoid overheat and to lift inflation.
• FOMC sees risks roughly balanced, monitoring inflation.
• Wages should increase at a faster pace.
• US economic outlook strong, inflation to rise to 2%.
• FOMC consults policy rules and he finds them helpful.
• Fiscal policy more stimulative, foreign demand firmer.
• Robust job market to support income and spending.
• Recent wage increases likely have been dampened by weak productivity growth. Last year's business investments should begin to lift productivity.

Watch Live here:

Key notes:

USD INDEX – Powell did not provide any signal of a pace of tightening but somewhat hawkish tone inflated the greenback

Fed Chair Powell: Sees further gradual rate hikes, outlook remains strong

About Jerome H. Powell

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.

Prior to his appointment to the Board, Mr. Powell was a visiting scholar at the Bipartisan Policy Center in Washington, D.C., where he focused on federal and state fiscal issues. From 1997 through 2005, Mr. Powell was a partner at The Carlyle Group. Mr. Powell served as an Assistant Secretary and as Undersecretary of the Treasury under President George H.W. Bush, with responsibility for policy on financial institutions, the Treasury debt market, and related areas. Prior to joining the Administration, he worked as a lawyer and investment banker in New York City. In addition to service on corporate boards, Mr. Powell has served on the boards of charitable and educational institutions, including the Bendheim Center for Finance at Princeton University and The Nature Conservancy of Washington, D.C., and Maryland. Mr. Powell was born in February 1953 in Washington, D.C. He received an AB in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. While at Georgetown, he was editor-in-chief of the Georgetown Law Journal.

Mr. Powell is married with three children.