Atlanta Federal Reserve bank president Raphael Bostic reiterated on Thursday that inflation is the biggest headwing to the US economy and that Federal Reserve's policymakers remain determined to beat it, as reported by Reuters.

"I appreciate recent reports that include signs of moderating price pressures, but there is still much work to do," Bostic added. "The most recent report showed the Fed's preferred measure of inflation running at a 5.5% annual rate."

Market reaction

The US Dollar Index extends its rally following these comments and was last seen rising 0.65% on the day at 104.95.