Dollar gains as Fed's Powell cautious on rate cuts

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(Reuters) -The dollar gained on Tuesday after Federal Reserve Chair Jerome Powell acknowledged progress in inflation, but did not give a clear signal that the U.S. central bank is close to cutting interest rates...

Powell said that inflation remains above the U.S. Federal Reserves 2% target, but has been improving in recent months and more good data would strengthen the case for central bank interest rate cuts...

He made the comments in congressional testimony, appearing to show increasing faith that inflation will return to the Feds target, a requirement for easing monetary policy...

The market is counting the days until we get a rate cut signal from Federal Reserve Chair Powell and I think there were some in the market who were looking for a more concrete step towards rate cuts later this year, said Adam Button, chief currency analyst at ForexLive in Toronto...

The European Central Bank can continue to gradually reduce interest rates without jeopardizing a current fall in inflation, governing council member Fabio Panetta said on Tuesday...

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