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The new Federal Reserve Chairman Jerome Powell addressed Congress yesterday, providing insight as to the US Monetary Policy. As expected, evidence of creeping inflation has disposed the Fed to be prepared to deploy rises in interest rates as a counterbalance. Whilst the Stock Markets digested this in their own way, with a little Dollar strength and Dow weakness, neither the evidence, nor his comments should come as a surprise. This was almost a knee-jerk reaction that had little to do with the facts. In fact, a little inflation is not a bad thing, & neither are modest interest rate rises when deployed as an inflationary brake. There are good reasons to remain optimistic about the US economy, and despite the relatively poor performance of the Dollar against the Japanese Yen (USDJPY) there are still plenty of reasons to buy Dollars.