Breaking: USD selloff remains intact as Powell talks about policy outlook

While speaking at an online event organized by Princeton Bendheim Center for Finance, FOMC Chairman Jerome Powell said that they need to see inflation rise above 2% for a time for the new framework to be credible to the public.

Market reaction

The greenback continues to weaken against its rivals during Powell's speech. As of writing, the US Dollar Index was down 0.17% on a daily basis at 90.18.

Key quotes

"Flexible average inflation targeting means we have not tied ourselves to a mathematical formula."

"We want inflation expectations well anchored at 2%."

"We announced framework there is evidence market participants have shifted expectations to be consistent with guidance."

About Jerome Powell (via Federalreserve.gov)

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.