In an interview with CNBC on Wednesday, San Francisco Fed President Mary Daly said the latest Consumer Price Index and Producer Price Index data were positive news, as reported by Reuters.

Additional takeaways

"Consumers are preparing for slower economy, that's a good start."

"We want to see economy slow."

"We want to get inflation down"

"Slower inflation, labor market are encouraging; need more of that."

"Pausing is not part of the discussion, now the focus is on level of rates."

"IN September, I wrote down 5% as an ending place for rates."

"I still think 5% is reasonable."

"When we hold rates, monetary policy becomes tighter as inflation comes down."

"Discussion now is how high we have to go, then will be, how long do we need to hold it."

"Global conditions are a headwind on US growth."

"A range of 4.75% - 5.25% is reasonable for policy rate end-point."

"Unemployment rate at 4.5%-5% would be reasonable."

"I'm 100% determined to slow the economy effectively, gently."

Market reaction

The US Dollar Index extends its daily recovery after these comments and was last seen losing 0.15% on the day at 106.41.