Federal Reserve Governor Christopher Waller argued on Friday that the recent data show that the Fed hasn't made much progress on its inflation goal and added that rates need to rise further, as reported by Reuters.

Key takeaways

"Extent of further increases depends on incoming data, credit tightening."

Still uncertain how SVB failure, bank stress, will impact broader credit conditions."

"Monetary policy will need to remain tight for a substantial period, and longer than markets anticipate."

"First quarter 2023 data continue to surprise with stronger growth, job creation."

"Significant credit tightening could offset need for rate hikes, but judgment difficult in real time."

"Developments so far validate decision to raise rates at last meeting, but continuing to watch data even more closely than usual."

"Liquidity steps taken after SVB failure appear to have succeeded in stabilizing the banking system."

Market reaction

The US Dollar benefits from these hawkish comments and the US Dollar Index was last seen rising 0.3% on the day at 101.30.