Cleveland Federal Reserve Bank President Loretta Mester said it will take two years for inflation to fall to the central bank's 2% target, adding that it will be "moving down" gradually from the current level, per Reuters.

The news also adds, “It isn't going to be immediate that we see 2% inflation. It will take a couple of years, but it will be moving down," Mester said in an interview with CBS News on Sunday.”

“We do have growth slowing to a little bit below trend growth and we do have the unemployment rate moving up a little bit. And that is OK, we want to see some slowing in demand to get it in line with supply,” said Fed’s Mester.

Market reaction

The news keeps the US dollar on the front foot amid a softer start to the week. However, risk-positive updates concerning China seem to have probed the Antipodeans’ downside during early Monday’s Asian session.

Also read: US reviews China tariffs, possible pause on federal gas tax to curb inflation