Fed's Kashkari: We may have to hold rates at a higher level for longer

Minneapolis Federal Reserve (Fed) President Neel Kashkari told CNN Tuesday that the labor market is still too hot and that it makes it harder to bring inflation down, as reported by Reuters.

"We may have to hold rates at a higher level for longer," Kashkari added and said that he is not forecasting a recession.

Earlier in the day, Kashkari told CNBC that they are totally committed to getting inflation back to the 2% target.

Market reaction

The US Dollar holds resilient against its major rivals after these comments with the US Dollar Index clinging to modest daily gains at 103.75.