Kansas City Fed President Esther George said on Friday that they have no clear narrative on the outlook for growth in today's murky economic landscape and added that the only piece of clear data is that  high inflation, as reported by Reuters.

Additional takeaways

"We are operating in a tight economy."

"I am watching if persistently high inflation seeps into expectations. If it does, trade-offs become more costly."

"Faster supply growth unlikely to take care of inflation problem."

"Financial conditions have tightened considerably this year, but clear more to be done."

"We need to move into restrictive territory."

"How restrictive remains to be seen."

"I expect rates will have to move higher for a sustained period, but moving too fast could disrupt financial markets."

"Policy actions also have a lag, impact on the real economy is still likely playing out."

Market reaction

The US Dollar Index preserves its bullish momentum following these comments and was last seen rising 0.65% on the day at 113.18.