While speaking at an event in South Carolina on Tuesday, Richmond Federal Reserve Bank President Thomas Barkin said that he is not convinced that inflation is on a "smooth glide path" to the 2% target.

"I fear more needs to happen curb demand and inflation," Barkin added and noted that the impact from higher interest rates may be lagged.

Market reaction

The US Dollar stays under strong selling pressure in the American session on Tuesday following the soft inflation reading. As of writing, the US Dollar Index was down nearly 1% on a daily basis at 104.65.