The Catalan expressed his delight with the 26-year-old after he kept a clean sheet the 2-0 win over Burnley.
With Ederson unavailable following his involvement in Brazil’s World Cup qualifier in the early hours of Friday morning, Steffen made his second start in the Premier League and produced a several key stops.
Guardiola says he has complete faith in the American as he hailed his team of goalkeepers.
“He is growing incredibly fast and well as a keeper working alongside Xabi Mancisidor and Richard [Wright],” the City boss said at his post-match press conference.
“He is a much better keeper than when he arrived because we have maybe the best keeper trainer in the world.
“We have incredible confidence in him because the moments he has to save the ball he does. We are delighted with him.”