Fed's Mester: Financial market alignment with Fed much closer than before

Cleveland Fed President Loretta Mester told CNBC on Friday that the financial market alignment with the Fed's policy outlook is much closer now than it was before, as reported by Reuters.

"My funds rate was above the median in December and still think we need to be somewhat above 5%," Mester added and said that she doesn't think they need to have a tradeoff between labor and price stability. "There has been some good movement on inflation measures but it's still too high," she further noted.

Market reaction

The US Dollar Index preserves its bullish momentum following these comments and was last seen rising 0.33% on the day at 104.92.