The Federal Reserve has to make sure that it is not overreacting to individual data points over the coming months, New York Federal Reserve President John Williams told reporters at a capital markets conference in Washington on Tuesday.
“The fact reserve levels are higher than the Fed was expecting does not change the calculus on monetary policy,” Williams added. “If inflation were to move in the wrong direction on a sustained basis, that could cause the Fed to become more accommodative. The most important tools for financial stability are existing ones.”
The US Dollar Index ignored these comments and was last moving sideways near 97.80, where it was virtually unchanged on a daily basis.
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