The remarks, reflecting similar sentiments from another top monetary policymaker, came a day before the release of closely watched inflation data and reinforced expectations that borrowing costs would likely remain elevated for some time.

Asia's gains came despite worries about where US President Donald Trump's next tariffs salvo will land after he imposed 25 percent duties on aluminium and steel imports and said he was considering further measures.

Powell told lawmakers at a congressional hearing that with policy "now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust" rates.

"We know that reducing policy restraint too fast or too much could hinder progress on inflation," he said. "At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment."

The Fed cut rates three times last year as inflation continued to slow and the labour market softened but expectations for more reductions over the next 12 months have been pared because progress is slow.

Observers said worries that Trump's tariffs, and plans to slash taxes, regulations and immigration, could reignite prices had also played a role in traders scaling back their rate-cut bets.

"One way or another the US consumer will pay for tariffs -- they are on the hook," said Hetal Mehta, head of economic research at St James's Place.

"The impact could be higher inflation, higher (US) interest rates to combat that inflation, or higher taxes for households."

New York Fed chief John Williams said the economy and consumer spending remained strong going into 2025, adding that inflation will continue to ease to the bank's two percent target.

However, he warned "it will take time before we can achieve that target on a sustained basis" and he did not expect the target to be reached this year.

In a reference to Trump, he added that, despite the strong fundamentals, "the economic outlook remains highly uncertain, particularly around potential fiscal, trade, immigration, and regulatory policies".

Readings on the US consumer and producer price indexes due this week will be pored over for an idea about the Fed's plans.

Wall Street ended Tuesday on a mostly positive note, despite tech stocks dragging the Nasdaq into the red, while Frankfurt and London saw another record close.

Hong Kong led gains across most Asian markets thanks to another rally in its tech firms, while Shanghai, Tokyo, Sydney, Seoul, Singapore, Manila and Jakarta were also well up. Wellington was flat, but Taipei and Mumbai edged down.

- Key figures around 0700 GMT -

Tokyo - Nikkei 225: UP 0.4 percent at 38,963.70 (close)

Hong Kong - Hang Seng Index: UP 2.3 percent at 21,792.88

Shanghai - Composite: UP 0.9 percent at 3,346.39 (close)

Euro/dollar: UP at $1.0363 from $1.0360 on Tuesday

Pound/dollar: UP at $1.2450 from $1.2446

Dollar/yen: UP at 153.58 yen from 152.45 yen

Euro/pound: DOWN at 83.25 from 83.24 pence

West Texas Intermediate: DOWN 0.3 percent at $73.08 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $76.78 per barrel

New York - Dow: UP 0.3 percent at 44,593.65 (close)

London - FTSE 100: UP 0.1 at 8,777.39 (close)

dan/pbt

BP

Dow