Richmond Fed President Thomas Barkin said on Friday that they are seeing some progress on inflation with demand normalizing, as reported by Reuters.

Barkin further added that the US labor market is still "quite hot" and noted that the labor demand continues to run ahead of labor supply, causing businesses to remain reluctant to shed employees. "It seems as if shortages in labor supply will continue," he said.

Market reaction

The US Dollar Index edged slightly lower following these comments and was last seen rising 0.27% on the day at 104.37.