Federal Reserve's Raphael Bostic said rate hikes won’t cause a recession and that the central bank can hike rates to deal with overly high inflation without sending the US economy into recession.

He repeats that the Fed rates hikes can take some pause arguing that the Fed might need to pause rate increases in September to take stock of how the economy is performing.

Key comments

Will proceed 'with intention, without recklessness'.

Monetary policymakers must be mindful of uncertainties, proceed carefully in tightening policy.

US dollar remains pressured

The bruised US dollar was sold off to a fresh one-month low on Tuesday. Against a basket of its rivals (DXY), the dollar fell to 101.646, its lowest level since April 25.