President of Federal Reserve Bank of Boston, in his speech today, laid out the conditions, under which FED or rather he might consider voting to ease policy from here.

He called that central banks might have to revise its growth and inflation outlook, since financial market volatility has increased significantly since December meeting and oil price has dipped further. He also said, Central banks should be in no hurry to raise rates, if inflation fails to resurface.

Main theme regarding his comments surrounding rate hike was - no inflation then no rate hikes. "If we see no progress on inflation at all, there would be no rush to be raising rates".

Regarding further easing, which financial markets have started betting on recently, Mr. Rosengren pointed out -

• FED need to assess that US economy isn't approaching 2% inflation at all.
• Unemployment rates need to rise rather than fall.
• Moreover significant deterioration in labour markets.

These conditions, as of now is not in place, so it is very unlikely for FED to consider easing. However, Mr. Rosengren's comments cleared that FED might be a bit far from next rate hike.

Dollar index has fallen this year due to pushback in hike expectations. The index is currently trading at 96.86, down -0.05% for the day so far.