Federal Reserve and the European Central Bank may both be able to execute a "relatively soft landing" that avoids a harsh recession for their respective economies as they raise interest rates to rein in inflation, St. Louis Federal Reserve President James Bullard said on Tuesday.

"Since modern central banks have more credibility than their counterparts in the 1970s, it appears that both the Fed and the ECB may be able to disinflate in an orderly manner and achieve a relatively soft landing," Bullard said in slides prepared for the presentation.

• The Federal Reserve is committed to inflation target.
• Soft landing feasible if regime shift executed well.

US dollar catches a safe haven bid

Meanwhile, US stocks struggled for gains and the dollar and gold rallied on Tuesday in a flight for safety, Markets are trading cautiously around simmering US-China tensions over Taiwan as well as the ongoing concerns about a cooling global economy. DXY is 0.63% higher at 106.07 the high for the day so far.