Federal Reserve Bank of Chicago President Austan Goolsbee told the Wall Street Journal on Thursday that they will need to monitor the risks of overshooting on interest rates, per Reuters.

Key quotes

"A sustained rise in long-term rates can have a very substantial effect on real economic performance."

"It's too soon to say whether or when the central bank would turn its focus to lowering rates."

"The US economy can stay on the golden path in which inflation declines closer to the Fed’s 2% target without a significant rise in unemployment."

Market reaction

The US Dollar Index was seen rising 0.15% on the day at 105.67 following these comments.