Federal Reserve Bank of Cleveland President Beth Hammack said on Tuesday that it will likely be appropriate to hold interest rates steady for some time, as reported by Reuters.

Key takeaways

"Patient approach to rates will give Fed time to assess economy."

"Fed is well positioned to respond to changes in the economy."

"Monetary policy is only modestly restrictive."

"Risks to inflation right now are skewed to upside."

"There is a lot of uncertainty around government policy."

"Best to take time to assess impact of any tariffs."

"Still not clear inflation will keep moving down to 2%."

"Getting inflation to target is paramount for Fed."

"Fed’s challenge is to lower inflation while keeping job market healthy."

"Economy is in a good place, job market is solid."

Market reaction

The US Dollar Index showed no reaction to these comments and was last seen virtually unchanged on the day at 108.30.