Cleveland Federal Reserve President Loretta Mester told CNBC on Friday that they probably have some more work to do with rates, per Reuters.

Additional takeaways

"We are getting close to where we need to be with rates."

"We need to see more evidence inflation is cooling."

"Economy momentum has been stronger."

"Fed has made a lot of progress on inflation."

"Don't want Fed to overtighten interest rates."

"In June forecast did not see Fed cutting rates in 2024."

"Main fed debate is whether rates are restrictive enough."

"Fed has to be patient with policy right now."

"It's very likely below trend growth needed to lower inflation."

"Labor market has been stronger than expected given Fed policy."

"We are looking at data to determine next policy choice."

Market reaction

The US Dollar Index edged slightly lower following these comments and was last seen rising 0.2% on the day at 104.20.