Minneapolis Federal Reserve President Neel Kashkari told CNBC on Thursday that they can dial back the policy rate quite slowly if labor market continues to be strong, per Reuters.

Kashkari said that a few more months of good inflation data will give them confidence that inflation is on its way back to 2%. "At the moment, two to three rates cuts this year seems appropriate," he added. 

Market reaction

The US Dollar Index showed no reaction to these comments and was last seen losing 0.15% on a daily basis at around 104.00.