St. Louis Federal Reserve President James Bullard told CNBC on Wednesday that the Fed will have to go north of 5% to tame inflation, as reported by Reuters.

Additional takeaways

"US economy is stronger than what we previously thought."

"We need to get inflation down in 2023."

"Silicon Valley layoffs have no bearing on overall strength of labor market."

"Still think we can get inflation down while maintaining a strong labor market."

"Still in a low productivity growth regime."

"Fed should only slow down once it's got to the terminal rate."

"Markets may be overpricing risk of recession in 2023."

"I forecast moderately slow growth this year with inflation declining."

"Fed's risk is inflation doesn't come down or inflation reaccelerates."

Market reaction

These comments don't seem to be having a noticeable impact on the US Dollar's performance against its rivals. As of writing, the US Dollar Index was up 0.08% on the day at 104.25.