Fed's Mester: Deficits matter but it should not prevent government from taking action

"Deficits matter but it should not prevent government or fiscal authorities from taking action," Cleveland Federal Reserve President Loretta Mester said on Wednesday.

Additional quotes

"The countercyclical capital buffer is an important tool we should be using."

"It would be hard to choose a monetary policy rule and say we’re going to stick to that rule."

"There was still some feeling that 2% inflation might be a ceiling but the new framework makes it clear the Fed will set the policy to achieve slightly higher inflation."

Market reaction

The US Dollar Index paid little to no mind to these remarks and was last seen gaining 0.52% on the day at 92.79.