Fed's Waller: Markets getting ahead of themselves in terms of expecting rate hikes

In an interview with CNBC on Friday, Fed Governor Christopher Waller said that they are happy to let inflation rise above 2%, as reported by Reuters.

Additional takeaways

"I don't think anyone would be comfortable if inflation got to 3% or above and stayed there a while."

"Dot plot is a problem right now."

"It's all about outcomes; we shouldn't be doing calendar-based forecasts."

"Markets are getting ahead of themselves in terms of expecting rate hikes."

"If measuring by levels, we are still in a recession."

"I'm thinking about it in levels, not growth rates."

Market reaction

The greenback remains on the back foot after these comments and the US Dollar Index was last seen losing 0.15% on the day at 91.53.