Federal Reserve (Fed) Bank of Cleveland President Beth Hammack said on Tuesday that the rate policy could remain on hold for quite some time as the Fed seeks clarity, per Reuters.

Key takeaways

"I don't see any imminent case to cut interest rates."

"Fed has time to make next decision on monetary policy."

"Would rather be slow and right than fast and wrong with monetary policy."

"Possible tariffs may have one-time hit on inflation, but that’s hard to say right now."

"Supported Fed’s decision to hold rates steady at June meeting."

"Fed policy is modestly restrictive."

"US economy has solid momentum, job market solid so far."

"Still some ways to go to get inflation to 2% target."

"Tariffs have added uncertainty to outlook."

Market reaction

The US Dollar Index struggles to rebound following these comments and was last seen losing 0.25% on the day at 98.10.

These comments received a neutral score of 5.6 from FXStreet Fed Speech Tracker. As a result, FXStreet Fed Sentiment Index inched higher to 106.1 from 105.8.