Powell speech: Weak inflation could be even more persistent than Fed currently anticipates

• Powell says trade uncertainty and global growth concerns weigh on US economy.
• Repeats economic growth appears to have moderated in the second quarter.

In his prepared statement to be delivered at his semi-annual testimony to the Congress, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, reiterated that the Fed will act 'as appropriate' to sustain the U.S. economic growth.

With the initial reaction to Powell's statement, the US Dollar Index turned south and was last down 0.25% on the day at 97.25. Below are some key quotes, per Reuters.

"It appears trade uncertainties and concerns about global economy continue to weigh on u.S. Economic outlook -prepared testimony."

"Baseline outlook is for U.S. economic growth to remain solid, labor markets to stay strong and inflation to move back up to central bank's 2% target."

"There is a risk weak inflation will be even more persistent than Fed currently anticipates."

"U.S. economic growth appears to have moderated in Q2; economic momentum appears to have slowed in some major foreign economies in recent months."

"Business investment growth seems to have slowed notably; may reflect concerns about trade tensions and slower global growth."

"Consumer spending growth was weak in first quarter but data show it has bounced back and is running at a solid pace."

"Economy's long-term challenges include high and rising federal debt and relative stagnation of middle and lower incomes."