"It is important that pandemic unemployment benefits are continued in some form after they are due to expire," Jerome Powell, Chairman of the Federal Reserve System, said while testifying before House Financial Services Committee on Wednesday.
Additional takeaways
"US needs to find a way to provide continued fiscal support to those people in hard-hit industries."
"US economy is in the early stages of a bounce-back."
"If the virus remains under control, there should be more positive economic data."
"Third phase of recovery is that workers in hardest-hit industries will continue to struggle."
"It does seem very likely that there will be more teleworking in the future."
"Pandemic is accelerating pre-existing trends in the economy, such as teleworking and online shopping."
"Fed plans to keep its foot on the gas until it is sure the US is on road to recovery."
"The Fed is not thinking about raising rates, that economy will need support for an extended period of time."
"Continuing to look at the expansion of credit-rating facilities for its programs."
Market reaction
The US Dollar Index clings to small daily gains near 97.10 after these remarks.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD trades steady after initial UK election results deliver few surprises
GBP/USD is fighting back into the high end as the Greenback broadly recedes on Thursday. Market volumes are drawn tight with US exchanges shuttered in observation of the US Independence Day holiday, and Cable traders found little reason to head for the hills after UK Parliamentary Election results came in broadly as-expected.
AUD/USD holds its ground, markets eye key NFPs from the US from June
The Australian Dollar held its ground against the USD, maintaining itself in highs since January. This is despite the weaker-than-expected Trade Surplus figures reported during the Asian session as the USD remains weak following Wednesday’s set of soft economic figures reported.
Gold price consolidates amid choppy trading ahead US NFP
Gold prices edge up 0.15% amid thin trading on US Independence Day. XAU/USD reached a two-week high of $2,365 Wednesday, driven by weak US jobs data and heightened Fed rate cut expectations. Traders shift focus to Friday's NFP report, following the US holiday closure.
Ethereum bears gain momentum after ETH breaches key support level
Ethereum is down more than 5% on Thursday following the US SEC failure to approve ETH ETF issuers' S-1 drafts. Meanwhile, the recent decline has strengthened the bearish outlook after ETH moved below a key support level, sparking $90 million in long liquidations.
Labour wins a landslide, as Pound is unconcerned by Starmer government
What a difference five years makes, Labour have turned themselves around and are on course to win 410 seats and a 170-seat majority, according to the exit polls conducted by the main UK broadcasters.