New York Federal Reserve (Fed) President John Williams said on Friday that cutting interest rates is not being discussed at the moment. "It's premature," he answered when asked about a rate cut in March or even considering the timing or rate cuts.

In an interview with CNBC, Williams expressed that the Fed has to focus on objectives, not on the view of the market. He warned that the market may be overreacting. 

Regarding the current policy stance, Williams said they are "at or near" the right place. He argued that financial conditions have tightened overall.

Market reaction

The US Dollar rose to fresh daily highs following these comments. Gold prices pulled back, and Treasury yields spiked higher. The US Dollar Index (DXY) is up by 0.50%, trading near 102.50.