Bullard wants rates above 5.0%. Dollar unimpressed

Fresh comments from FED's Bullard did not provide much support for USD:

• Growth in Q4 will be stronger than expected

• The economic outlook is better than assessed just a few weeks ago

• It is good that inflation is falling, but it remains too high

• Inflation will fall thanks to the monetary policy that is currently appropriate

• It is difficult to assess how the unemployment rate is expected to rise from current levels, the labor market is extremely strong

• To avoid the 1970s scenario,  Fed must maintain rates at high enough levels to make sure inflation moves down

• Interest rates must be raised above 5% - as soon as possible

• There's possibly too much optimism that inflation will come easily back to 2%

EURUSD does not react to Bullard comments, as he is known for his hawkish approach. Main currency pair oscillates slightly below session highs around 1.0840. Source: xStation5