The dollar has strengthened against a basket of currencies today as worries over the global economic outlook have prompted the markets to look to safe-haven currencies.
The greenback was also supported by comments from Treasury Secretary Janet Yellen, who spoke with Federal Reserve Chair Jerome Powell at a hearing of the House Financial Services Committee. She said that tax hikes could be introduced soon. She said that the economy is still in crisis due to the pandemic and that there is still “a huge problem of joblessness”.
Powell downplayed concerns about inflation and said that “we do expect inflation will move up over the course of the year”.
Today, Yellen and Powell will testify to the Senate Banking Panel.
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