Adding to her earlier comments, Federal Reserve Bank of Cleveland President Loretta Mester, during the Q&A session before the 50 Club of Cleveland Monthly Meeting, said that higher rates are needed to make sure the disinflation process continues.

Additional quotes:

Fed will keep rates restrictive to get inflation down
A.I. technology will change a lot in the economy
Student loan restart won't bring immediate change in consumer spending
Do not see the US Dollar (USD) getting dethroned; USD is a very strong currency.

Market reaction

The hawkish-sounding remarks assist the USD Index, which tracks the Greenback against a basket of currencies, to stand tall near its highest level since late November 2022 touched during the Asian session on Tuesday.