New York Fed President John Williams told CNBC on Tuesday that recession was not his base case, as reported by Reuters.

Additional takeaways

"Economy is strong, financial conditions have tightened."

"GDP expected to grow 1% 1.5% for the year."

"We have a path forward to bring inflation down."

"Some downside risks are from abroad."

"Watching effects of tightening financial conditions."

"Seeing slowing in interest-rate sensitive sectors."

"Unemployment rate will move up in next few years."

"Unemployment will rise to a little over 4% over the next couple of years."

"Longer-run neutral rate has not changed, still quite low."

"Nominal neutral rate is higher, that's one reason we need to raise rates quite a bit this year, next year."

"We need to get real rates above zero."

"We need to get to somewhat restrictive territory next year."

"The data may tell us something different."

"Reasonable to get to 3.5% - 4% fed funds rate."

"75 bps rate move was exactly right."

"Next meeting 50 bps or 75 bps will be the debate."

"Not seeing signs of the taper tantrum, markets are functioning well."

Market reaction

The greenback holds its ground after these comments with the US Dollar Index rising 0.35% on the day at 104.30.