Fed's Evans: Inflation is unacceptably high

Chicago Fed President Charles Evans acknowledged on Wednesday that the latest CPI data was the first positive inflation report but noted that inflation was still unacceptably high, as reported by Reuters.

Additional takeaways

"US labor market is vibrant."

"Employment is so strong, a sign of a still-strong economy."

"Optimistic economy will continue to grow in the second half of the year."

"I expect we will increase rates this year and next year."

"It's an optimistic forecasting that next year core PCE inflation will be closer to 2.5%."

"I'm not looking for the economy to turn down in a significant fashion any time soon."

"The economy is almost surely a little more fragile, but would take something adverse to trigger a recession."

"I expect economic growth next year to be 1.5% -2%."

Market reaction

These comments failed to help the dollar stage a rebound and the US Dollar Index was last seen losing 1.4% on the day at 104.80.