"At some point, it will be appropriate to slow the pace of rate increases and hold rates for a while to assess the impact on the economy," Chicago Fed President Charles Evans said on Tuesday, as reported by Reuters.

Additional takeaways

"Reduction in balance sheet equivalent to 35-50 basis points of policy restraint."

"My outlook roughly in line with the fed median assessment of rates at 4.25-4.50% at the end of 2022; 4.6% end of next year."

"Not looking at recession-like numbers in softening of the labor market ahead."

"Our actions will result in below-trend growth and softening of labor market."

"Failing to restore price stability would result in far greater costs."

"Many of the risks to Fed's outlook appear to be on the downside."

"Fed must be watchful, adjust policy if changes in economic circumstances dictate."

"I expect modest increases in GDP over second half of this year."

"Signs unusual strength in labor demand may be waning; supply chain issues improving."

"I expect inflation to cool substantially over next couple of years."

"Labor force participation rate not far from long-term trend."

"Measures of longer-horizon inflation expectations remain well anchored."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.5% on the day at 113.56.