Jay Powell gave a markedly bullish assessment of the US economic outlook in his first congressional testimony as Federal Reserve chair, triggering speculation that he could preside over a quicker pace of interest rate increases as the economy accelerates.
Addressing the House financial services committee, Mr Powell said the economy had been stronger this year than he expected in December as he vowed to forge ahead with gradual increases in interest rates to avoid an “overheated economy”.
Mr Powell said he and his colleagues would take the firmer than expected data into account when they draw up their interest rate forecasts in March, prompting a rise in the dollar as some analysts predicted higher chances that the Federal Open Market Committee will push through four rate rises in 2018.