In an interview with CNBC on Thursday, San Francisco Federal Reserve President Mary Daly said it was too early to declare victory on inflation, as reported by Reuters.

Additional takeaways

"Hard to say wage growth is going to lead inflation down."

"We still have an economy with a lot of momentum."

"We need to move rates up to restrictive territory."

"Policy effects need to go through the system."

"As inflation starts coming down, we can start lowering the nominal rate to bring real rates down to neutral level."

"We want to start heading towards the neutral rate as we approach 2% on inflation."

"Right now, all of my attention is on decidedly if we need to hike more and how much more we need hike in order to really get inflation heading down to 2%."

Market reaction

These comments failed to help the US Dollar find demand. As of writing, the US Dollar Index was down 0.55% on the day at 100.00.