Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari said on Monday that the monetary policy is still in a restrictive stance, adding further "modest" rate cuts could be appropriate, per Reuters.

Key takeaways

"One of Fed's most important assets is credibility."

"Economy is in final stages of getting inflation back to 2%."

"It's unclear how restrictive monetary policy is."

"The job market remains strong."

"Recent jobs data shows labor market isn't weakening quickly."

"Future path of monetary policy to be driven by data, economy's performance."

Market reaction

The US Dollar (USD) preserves its strength following these comments. At the time of press, the USD Index was up 0.3% on the day at 103.24.