Federal Reserve's Harker: Monetary policy still needs to remain tight to suppress inflation.

Federal Reserve's Harker stated that although the US dollar is not a core topic of discussion for the central bank, the weakening of the dollar this year does not seem to be a cause for concern. Harker said, "I think there have been many discussions this year about the US dollar and its weakening. However, it is important to remember that we started from a position where the dollar was extremely strong, so this year's weakness is largely just bringing the dollar closer to its theoretically fair value, making it more reasonable compared to other currencies." Harker also stated that interest rate policy should remain restrictive in order to put downward pressure on the still concerning level of inflation. She pointed out, "Given the dual mandate of the Federal Reserve in terms of inflation and employment facing challenges, it is a difficult period for monetary policy." "But overall, I believe we need to maintain a certain degree of tightening in order to continue putting pressure on inflation and bring it back down to our target level."