Fed’s Bostic: Fed has work to do with inflation, 'long way' from 2%

Atlanta Fed President Raphael Bostic said in an essay published on Tuesday, "I don't think we are done tightening. Inflation remains too high."

''That said, incoming data, if they clearly show that inflation has begun slowing - might give us reason to dial back ... We will have to see how those data come in."

A slowing of inflation in July "represented a reprieve," Bostic said.

"Moving either too aggressively or too timidly has downsides," Bostic wrote, with entrenched higher inflation looming if the Fed does not squeeze it from the economy, and lost growth and higher unemployment the outcome of "severe policy tightening."

The US dollar, meanwhile, was sent to a 20-year high on Thursday, and notched a 24-year peak against the rate-sensitive Japanese yen, after US data showed a resilient economy, giving the Federal Reserve more room to aggressively hike interest rates to quell inflation. The US dollar index, DXY, which measures the greenback against a basket of six currencies touched 109.99, its highest since June 2002.