"We must remain prepared to continue rate increases for a longer period than previously anticipated, if such a path is necessary to respond to changes in the economic outlook or to offset any undesired easing in conditions," Dallas Federal Reserve President Lorie Logan said on Tuesday, as reported by Reuters.

Additional takeaways

"Even after pausing rate hikes, need to stay flexible, tighten further if conditions call for it."

"Need continued gradual rate hikes until see convincing evidence inflation falling to 2% in sustainable, timely way."

"Tightening policy too little is top risk."

"Tightening too much or too fast risks weakening labor market more than necessary."

"Should not lock in a peak Fed policy rate or precise rate path."

"Has been some progress on inflation, will need to see slower inflation in services."

"Little sign of improvement in core services ex housing inflation; symptomatic of tight labor market."

"Need better balance in labor market to bring inflation sustainably back to 2%."

"US job market is incredibly strong; likely to need substantially slower wage growth to reduce inflation."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen trading flat on the day at around 103.30.