It's too soon to tell if more policy rate action is needed, Federal Reserve (Fed) Governor Christopher Waller said on Tuesday and added that they can "wait, watch and see before making definitive moves on policy path," per Reuters.

Key quotes

"More action on policy rate would be needed if demand, economic activity keep up recent pace."

"Past few months' data 'overwhelmingly positive' for fed's employment, inflation goals."

"I will be watching how recently risen longer-term rates evolve and impact financial conditions, economic activity."

"I will be patient in waiting for data to document how spending evolves."

"Time will tell if higher rates dampen business spending, or subsidies and onshoring increase it."

"Anticipating unusually tight labor market to continue loosening, but watching closely."

"Will watch next several inflation reports for clearer indication it's on trajectory to 2%."

Market action

The US Dollar preserves its strength following these comments. At the time of press, the US Dollar Index was up 0.37% on the day at 106.58.