Powell speech: Commitment to price stability contributes to confidence in dollar

The US Federal Reserve's strong commitment to price stability contributes to a widespread in confidence in the US dollar as a store of value, FOMC Chairman Jerome Powell said on Friday, per Reuters.

Additional takeaways

"A US CBDC could potentially help maintain the US dollar's international standing."

"Rapid changes in global monetary system may affect the future international role of the US dollar."

"As Fed considers its own CBDC, will be thinking of how the global financial system will evolve over next decade."

"Fed is acutely focused on returning inflation to 2% goal."

Market reaction

The greenback extends its rebound following these comments and the US Dollar Index was last seen rising 0.75% on the day at 104.55.