The Dow also hit an intraday record. Real-estate and technology shares led gains.
EUR/USD dipped by 0.44% to $1.1415 while EUR/GBP fell 0.82% to £0.8853.
In the Fed's regional survey known as the "Beige Book" released Wednesday, the St. Louis Fed reported that some manufacturers were citing "candidates' inability to pass drug tests or to consistently report to work". But the futures market estimates the probability at just 13% that the central bank will lift its target rate (currently at a 1.0-1.25% range) on September 20 (based on early trading on July 12).
"Yellen is dovish by nature", said Anderson. The fact that prime-age people, in particular, have fallen out of the workforce is a puzzle that has left the Fed wondering whether it can draw more people back into the labor market.
According to the central bank chief, the benchmark interest rate might not be far away from the neutral one where the economy reaches full employment, runs in line with trend growth and poses stable prices. However, on reflection, the market has considered there will be at least one more hike in the Fed Interest rate in 2017 and 3 in 2018, and for the time being has sold the United States dollars.
The Fed's preferred measure of inflation, the personal consumption expenditures index, has also been slipping.
"We want to make sure that we manage this in a way that is not disruptive to financial markets", said Yellen. "She said inflation response to economy is a key uncertainty, alluding to the inflation again, part of the dovishness". "The market was a little anxious but she's back to the same dovish Yellen".
Yellen, speaking with the Senate Banking Committee, said that's because productivity growth is very hard to move. Today will see Fed Chair Janet Yellen speak to the House of Representatives Financial Services Committee at 10AM ET, and tomorrow she will speak to the Senate Banking Committee on Thursday at the same time.
Beyond monetary policy, political tensions, which pressured the USA dollar lower on Tuesday, continued to weigh on greenback Wednesday. Yen weakness has been a predominant trend in the FX market for nearly a month now, starting with the reversal seen in mid-June. On the Nasdaq, 1,721 issues fell and 1,046 advanced. Shares of Exxon Mobil Corp.(XOM) added 0.5% and Chevron Corp.(CVX) gained 0.8%.