Cleveland Federal Reserve President Loretta Mester said on Friday that the July inflation report was welcome news but added that she needed to see more convincing data to conclude inflation was coming down, as reported by Reuters.

Additional takeaways

"I think FOMC Chairman Jerome Powell delivered a very strong message."

"We're all in and we're going to be resolute about getting inflation to goal."

"Market is between 50 and 75 for September and that's where my head is, need to see more data though."

"We really have an imbalance in supply and demand, Fed tools really work on demand side."

"European situation may indicate that gasoline prices do not keep retreating."

"Need to be cautious in thinking that inflation has peaked."

"Would need to see convincing evidence of inflation coming down before we stop rate hikes."

"We're still in negative real rates, haven't even gotten to a neutral fed funds rate."

"I think will need to take rates above 4% and leave them there."

"Not predicting recession but expect below-trend growth this year and next."

"Will likely see weakening in labor market."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.1% on the day at 108.30.