New York Federal Reserve President John Williams said on Wednesday that the monetary policy is not the best tool to address financial stability risks, as reported by Reuters.

Key takeaways

"Price stability is essential for the US economy to function well."

"Central banks around the world taking strong action to restore price stability."

"It is important to bolster the resilience of the treasury market."

Market reaction

US Dollar Index continues to erase its daily losses following these comments and was last seen losing 0.17% on the day at 106.38.