Federal Reserve Governor Michelle Bowman said on Tuesday that they are not yet at the point where it is appropriate to cut interest rates, per Reuters.

Key takeaways

"Should data show inflation moving sustainably to 2%, it will eventually become appropriate to gradually lower policy rate.",

"Baseline outlook continues to be inflation will return to 2% with policy rate held steady for some time."

"Willing to raise the target rate at a future meeting if inflation progress stalls or reverses."

"Will remain cautious in approach to future changes in policy stance."

"Other central banks may ease monetary policy sooner or more quickly than the Fed."

"Only modest further progress on US inflation seen this year."

"Expecting US inflation to remain elevated for some time, still see a number of upside inflation risks."

"US labor market remains tight, despite some further rebalancing."

Market reaction

The US Dollar Index edged higher in reaction to these comments and was last seen rising 0.1% on the day at 105.58.