Fed's Mester: Fed will discuss policy stance as economy continues to improve

As the US economy continues to improve, the Federal Reserve will have discussions about the policy stance overall, Cleveland Federal Reserve President Loretta Mester told CNBC on Friday.

Additional takeaways

"Fed is looking at what the data says and not just the forecast."

"Some valuations in the stock market look higher than can be supported by fundamentals but the Fed policy is not driving that."

"Treasury market had issues at the start of the pandemic and fed is looking at longer-term issues."

"Our job is to make sure that the fundamentals in the market are sound."

"It behoves us to keep an eye on financial stability issues."

"At this point, I don't see any reason to react to what's happening in markets with monetary policy tools."

"Expecting to see progress continue to be made on the employment front."

"The key point is the Fed is attuned to the risks on the upside and downside."

Market reaction

These comments don't seem to be helping the greenback erase the losses it suffered against its rivals following the disappointing May jobs report. As of writing, the US Dollar Index was down 0.4% on the day at 90.12.