Fed's Bullard: Need to be ready for upside risks to inflation

"We're in a much stronger position with respect to reopening and inflation has come along with it," St. Louis Fed President James Bullard said on Monday, as reported by Reuters.

Additional takeaways

"Expecting 2.5% Core PCE inflation for 2022."

"If you average that across past years you get close to 2% inflation."

"No one really knows how this is going to unfold but need to be ready for upside risks to inflation."

"Fed needs to be ready to react on both side of that and stay nimble."

Market reaction

The greenback remains on the back foot after these comments and the US Dollar Index was last seen losing 0.4% on the day at 91.96.