"We are probably going to have a slightly higher peak to Fed policy rate even as we slow pace of rate hikes," Chicago Fed President Charles Evans said on Friday, as reported by Reuters.

"We're on a path to getting financial conditions appropriately restrictive to bring inflation down to 2%," Evans noted and added that they are well-positioned to be evaluating some very clear improvements on inflation.

Market reaction

The US Dollar Index clings to modest recovery gains following these remarks and was last seen rising 0.32% on the day at 105.05.