Federal Reserve (Fed) Vice Chair of the Board of Governors Phillip Jefferson said on Monday that they will assess incoming data, evolving outlook and balance of risks to set appropriate stance of policy rate, per Reuters.

Fed officials take on cautious tone on policy after April inflation report.

Key quotes

"Policy rate is in restrictive territory."

"We continue to see the labor market come into better balance, and inflation decline, though nowhere near as quickly as would have liked."

"Expecting consumer spending growth to slow later this year."

"Too early to tell if recent slowdown in disinflationary process will be long-lasting."

"April's better inflation reading is encouraging."

"Fed staff estimate core PCE prices rose at an annual 4.1% in the first four months of 2024, with 12-month change at 2.75%."

"Long-term inflation expectations show Americans believe the Fed will make good on 2% inflation goal."

"Restrictive monetary policy has weighed on the housing market."

Market reaction

These comments don't seem to be having a noticeable impact on the US Dollar's valuation. At the time of press, the US Dollar Index was unchanged on the day at 104.50.