Fed's Daly: It is premature to start talking about rate increases

In an interview with CNN on Thursday, San Francisco Federal Reserve Bank President Mary Daly said they are at a point where they feel they can taper bond purchases, as reported by Reuters.

Additional takeaways

"It is premature to start talking about rate increases."

"Price increases will last as long as COVID is with us; as covid subsides, pressures will ease."

"Bottlenecks causing price rises are related to COVID."

"If Fed pulls back on accommodation, I bet won't solve the supply-chain problem."

"Near-term inflation outlook won't be affected by decisions on infrastructure spending."

Market reaction

The greenback remains on the back foot following these comments and the US Dollar Index was last seen posting small daily losses at 93.92.