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Federal Reserve’s Vice Chairman for Supervision Randal Quarles said on Wednesday that the time for discussing rate hikes is still far in the future and reiterated that the policy will remain highly accommodative for some time, per Reuters.

Additional takeaways

“May need more communications about what substantial further progress  toward employment goal means.”

“Inflation to meet the bar for tapering later this year  but the labor market improvement will be slower.”

“Would be unwise to slow recovery prematurely.”

“Financial stability risks are manageable: households are resilient; banking sector is strong.”

“Quite optimistic about the path of the economy.”

“Will be important to begin discussing plans to adjust asset purchases at upcoming meetings.”

“Expecting rapid growth this year, slowing to still robust  pace next year.”

“Significant  part of recent boost to inflation is transitory.”

“Inflation to subside over next several months, run close to 2% at some point in 2022.”

“If shortages persist into 2022, inflation expectations could rise, make above-target inflation more persistent.”

“Uneven global recovery, supply bottlenecks pose potential headwinds for economy.”

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen gaining 0.4% on the day at 90.03