In an interview with CNBC on Monday, Chicago Federal Reserve Bank President Austan Goolsbee said that they need to monitor more than normal data sets and be attuned to credit conditions when deciding on policy, per Reuters.

Key takeaways

"A lot of impact of rate hikes is still in the pipeline."

"It does not feel like a 2008-type of crisis, but it feels like stress in some parts of the financial sector."

"Effect of banking stress is not small, we need to take it into account, sit and watch it."

"We should be extra mindful, want to get inflation back to target path without starting a recession."

"We are trying to figure out where we are in the business cycle, when this cycle looks like no other."

"May rate hike for me was a close call."

Market reaction

The US Dollar Index stays under modest bearish pressure in the early American session and was last seen losing 0.25% on the day at 102.45.