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Chicago Federal Reserve Bank President Charles Evans reiterated on Tuesday that he is fully supporting the Fed’s accommodative policy and argued that the recent rise in inflation is welcome, as reported by Reuters.

Additional takeaways

“Low risk of high, persistent inflation in 2022 and beyond.”

“Recent increase in inflation not a precursor of undesirably high inflation.”

“Inflation expectations not signalling inflation is spiralling out of control.”

“It  won’t be easy to cut through effects of temporary supply pressures to see underlying inflation dynamics.”

Market reaction

The US Dollar Index largely ignored these comments and was last seen losing 0.15% on the day at 89.70.