In an interview with Yahoo Finance on Friday, San Francisco Fed President Mary Daly said that this week's Consumer Price Index (CPI) data was not that surprising, noting that it's a lagging indicator, as reported by Reuters.

Additional takeaways

"Today's retail sales report is another sign of some cooling."

"We will have to be data-dependent on rate hikes."

"We are working in a global economy, lots of uncertainty and risks."

"No doubt that we need more restrictive policy."

"Fed's Summary of Economic Projections is not stale; it is a good guidepost for policy."

"I still think September projections are really reasonable."

"We are tightening into a strong economy."

"Data are coming in about what we would expect."

"Mindful about making sure inflation doesn't become embedded."

"We'll stop raising rates when appropriate, and then will hold it for a while."

"We can correct our course if needed."

"4.5%-5% is most likely top fed funds rate, then will hold it there."

"Not hearing signs of recession when talking with contacts in the district."

"People expect the slowdown to be short-lived, not deep."

"Labor market needs to cool further."

"We are committed to bringing demand back in line with supply."

Market reaction

The US Dollar Index was seen rising 0.55% on the day at 113.08 after these comments.