Fed's Mester: Rate cuts have less of an impact in current environment

Cleveland Federal Reserve President Loretta Mester, who voted against the 100 basis points rate cut at the Fed's latest emergency meeting, argued that rate cuts would have a less of an impact in the current environment.

In a written statement, Mester explained that she would prefer for the Fed to hold onto the option of another rate cut in the future. 

"If market illiquidity continues, I will support our taking further actions to address funding needs, including activating facilities like those the Federal Reserve has used in the past," Mester added.

DXY rally continues

The US Dollar Index (DXY) largely ignored these comments and was last up 1.4% on the day at 99.37.