Federal Reserve's Esther George explained that the Fed must restore price stability, ‘that means returning to 2% inflation’.

She also said that markets may have a different view of what the Fed needs to do but the central bank's commitment is to 2%.

Her comments follow today's economic data, specifically the Producer Price Index and Retail Sales. The data showed disinflationary tendencies in the data and reinforced expectations that the Fed will continue to reduce its tightening pace in upcoming meetings. 

US Dollar update

The Fed's Beige Book is coming up and Fed's Patrick Harker will also speak on the economy, both of which could be a catalyst for the greenback that has been whipsawed today in conflicting sentiment surrounding the Fed. The data spared a sell-off in the greenback but the moves in forex have been faded due to hawkish commentary from Fed officials.