Fed's Barr: Fed in good position to hold steady and watch economy

Federal Reserve Vice Chair for Supervision Michael Barr said on Monday that the Fed is in a good position to hold the policy steady and watch the economy, per Reuters.

Key takeaways

"Q1 inflation was disappointing, did not provide the confidence needed to ease monetary policy."

"Fed will need to allow tight policy further time to continue to do its work."

"Vigilant to the risks to both inflation and employment mandates."

"Current approach is prudent to manage both sets of risks."

Market reaction

The US Dollar Index edged slightly higher and was last seen gaining 0.1% on the day at 104.60.