Loretta J. Mester, president of the Federal Reserve Bank of Cleveland, joins Washington Post global economics correspondent David J. Lynch to discuss the Fed’s plan to tamp down on inflation and the concerns that it could induce a recession.

Key quotes

We'll be growing below trend this year.

We are not in a recession.

Haven't seen inflation cool ‘at all,’ reiterates commitment to bringing inflation under control.

Have to take Fed's models with ‘some caution’.

No slowdown in US labour markets, looking very healthy right now.

US dollar catches a safe haven bid

Meanwhile, US stocks struggled for gains and the dollar and gold rallied on Tuesday in a flight for safety, Markets are trading cautiously around simmering US-China tensions over Taiwan as well as the ongoing concerns about a cooling global economy. DXY is 0.63% higher at 106.07 the high for the day so far.