Richmond Fed President Thomas Barkin reiterated on Friday that the Fed will do what it takes to return inflation target but acknowledged that this will not happen immediately, as reported by Reuters.

"We are starting to see some precautionary softening in business investment," Barkin added. "Returning to normal does not require a calamitous drop in economic activity."

Market reaction

The US Dollar Index edged higher on these comments and was last seen rising 0.45% on a daily basis at 107.97.