Further interest rate increases will likely be appropriate, with inflation still being too high, Federal Reserve Governor Michelle Bowman said on Friday, per Reuters.

Key quotes

"Fed policy will need to be held at a restrictive level for some time to return inflation to 2% 'in a timely way."

"Continued risk of a further increase in energy prices could reverse some of the recent progress on lowering inflation."

"The economy is still growing at a solid pace, with robust consumer spending and solid job gains."

"Bank lending standards have tightened but there is no sign of a sharp contraction of credit that would significantly slow the economy."

"Expecting progress on inflation to be slow under current conditions, suggesting the need for even tighter policy."

Market reaction

These comments failed to trigger a noticeable market reaction and the US Dollar Index was last seen posting small daily losses at 105.36.