Richmond Federal Reserve President Thomas Barkin said on Wednesday that they are making real progress on inflation while the economy remains healthy, per Reuters.

Barkin added that they can see the case for a soft landing developing in the data but noted that it was not 'inevitable.'

He further explained that risks to soft landing include delayed impact of high interest rates on credit, outside shocks, services inflation getting stuck at a high levels and demand remaining strong. "That's why the potential for additional rate hikes remains on the table," Barkin said.

Market reaction

The US Dollar preserves its strength following these comments and the US Dollar Index was last seen rising 0.3% on the day at 102.52.