Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, said on Friday that he thinks that it is the time to start reducing asset purchases but added it's not time to raise rates yet, as reported by Reuters.

Additional takeaways

"Risks are clearly to longer, more persistent bottlenecks, and thus to higher inflation."

Our policy is well-positioned to manage a range of outcomes."

"We need to watch carefully to see whether the economy is evolving with our expectations and adapt accordingly."

Market reaction

The US Dollar Index edged slightly higher after these comments and was last seen losing 0.07% on the day at 93.68.