San Francisco Federal Reserve Bank President Mary Daly said on Wednesday that the strength of the US economy and elevated inflation suggests that they have more work to do on rate hikes, as reported by Reuters.

Key takeaways

"Prudent Fed policy requires calibrating decisions based on all the data."

"Good reasons that economy may keep slowing even without further rate hikes."

"We are committed to ensuring all deposits are safe."

"Fed is prepared to use all tools for any size bank to keep system safe and sound."

"Economy remains strong, labor market extremely tight."

"Fed must monitor tightening credit conditions in determining path of rates."

"Committed to 2% inflation goal."

"Global headwinds, lagging impact of Fed rate hikes are also factors in setting policy."

Market reaction

The US Dollar showed no immediate reaction to these comments and the US Dollar Index was last seen losing 0.6% on the day at 101.55.