Fed's Mester: Fed will not let inflation run rampant with new strategy

"We are going to get back to a strong economy but it will take a couple of years for labor market to return to pre-pandemic levels," Cleveland Federal Reserve President Loretta Mester  said on Wednesday.

Additional takeaways

"It will take support from monetary policy and fiscal policy for the economy to fully recover."

"Downside risks dominate over upside risks, the Fed needs to be prepared for recovery to take long."

"It's going to take a while to get inflation back above 2%."

"The Fed will not let inflation run rampant with the new strategy."

"Climate change has the potential to be very detrimental to the US economy if we don't do something about it."

"Monetary policy is going to have to remain accomodative for quite some time during the recovery phase."

"The Fed has room for the policy through forward guidance and the balance sheet."

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was up 0.47% on a daily basis at 92.74.