Fed's Mester: Will take action if inflation is not consistent with Fed's goals

Cleveland Federal Reserve Bank President Loretta Mester said on Friday that they will take action if inflation is not consistent with the Fed's goals, as reported by Reuters.

Additional takeaways

"Will still be buying assets after tapering starts but at a reduced pace, which still puts some downward pressure on rates."

"Asset purchases are not doing as much now and I think Fed can reduce the pace."

"There's frothiness in equity markets and housing markets."

"I don't think there's an impending bubble ready to burst in real estate and stocks but need to look carefully."

"Fiscal policy is expected to be a drag next year but we'll have to see what happens."

"It's a base case that we're going to have growth and the recovery is going to continue."

"Fed is struggling to hire workers similar to other employers."

"Fed is looking at risk aspects of climate change and what risks banks would be exposed to."

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was up 0.28% on a daily basis at 93.34.