Fed's Williams: COVID had an enormous shock on supply and demand

New York Federal Reserve President John Williams noted on Monday that the coronavirus outbreak had an enormous shock on supply and demand, as reported by Reuters.

Regarding the inflation outlook, "it's really hard to decipher what is an underlying or persistent factor versus a temporary factor," Williams added. "The Fed has to watch the data and continue to learn as the economy progresses."

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its major rivals. As of writing, the US Dollar Index was up 0.13% on a daily basis at 92.22.