Cleveland Federal Reserve President Loretta Mester said on Tuesday that she is not yet thinking about adjusting monetary policy and added that she'd like to see further progress on employment, as reported by Reuters.

Additional takeaways

"When the time comes, the Fed should start with the tapering model used after last recession and adjust if needed."

"The Fed should be methodical in approach to tapering and communicate with the public to avoid surprises."

"Will get a better read on labor force participation rate as schools open and enhanced unemployment benefits expire."

"The US economy has picked up quite a bit but we're not done with the pandemic yet."

"We have seen inflation expectations move up but not to levels that are concerning."

"Expecting economic growth of between 6% and 7% this year."

"Expecting inflation of around 3% to 3.5% this year before it goes down to 2% next year."

"Unemployment rate could drop to below 4% by next year."

"Elevated prices are caused by supply constraints."

Market reaction

The US Dollar Index stays in the positive territory around 92.00 following these comments.