Cleveland Federal Reserve Bank President Loretta Mester said on Tuesday that she was not anticipating the Fed to cut rates next year, as reported by Reuters.

Additional takeaways

"We need to raise the policy rate to somewhat above 4% by early next year; hold it there."

"Real rates will need to move into positive territory; remain there for some time."

"Bringing down inflation will be painful in the near term; requires a lot of fortitude."

"I see the unemployment rate rising somewhat above 4% by the end of next year."

"Size of rate increases at each meeting depends on the inflation outlook."

"I have not incorporated recession into my base outlook for the US economy."

"Risks of recession over the next year or two have moved up."

"I expect inflation in the range of 5-6% for this year, then to make more progress back down over next 2 years."

"Wage pressures show little sign of abating."

"Without asset sales, reduction of the balance sheet could take 3 years or so."

"Far too soon to conclude inflation has peaked."

Market reaction

These comments don't seem to be having a significant impact on the dollar's valuation. As of writing, the US Dollar Index was up 0.15% at 109.00.