In an interview with CNBC on Friday, St. Louis Fed President James Bullard explained that the FOMC's hawkish tilt was due to the fact that the economy has been performing better than expected this year, per Reuters.
Additional takeaways
"FOMC was surprised on the upside over the last few months."
"Recent data is very good news."
"Expecting to see lots of continued improvement."
"Inflation is more intense than expected."
"Some upside risk remains with some reopening still to occur."
"Upside risk of inflation is okay since that is what the Fed was hoping to achieve."
"Fed must remain nimble."
Market reaction
The greenback started to gather strength against its rivals following these remarks and the US Dollar Index was last seen gaining 0.15% on the day at 92.04.