Fed Vice Chair Lael Brainard reiterated on Wednesday that the Fed's policy rate will need to rise further and that they will need to keep the policy restrictive 'for some time,' as reported by Reuters.

Additional takeaways

"Our resolve is firm, goals clear, tools up to the task."

"We need several months of low monthly inflation readings to be confident inflation is moving down to 2%."

"Higher policy rate, balance sheet reduction should help bring demand into alignment with supply."

"Especially important to guard against rise in inflation expectations."

"Labor demand continues to exhibit considerable strength, hard to reconcile with more downbeat tone of activity."

"May take some time for full effect of tighter financial conditions to work through economy."

"At some point in tightening cycle, risks will become more two-sided."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.25% on the day at 109.97.