Loretta Mester, President of the Federal Reserve Bank of Cleveland, stated in an interview with the Financial Times on Monday that markets are anticipating rate cuts ahead of the Federal Reserve’s timeline, as reported by Reuters.

Mester emphasized that the upcoming focus is not on when to decrease rates, despite market sentiments leaning in that direction. Instead, she pointed out that the next phase will revolve around determining the duration for which monetary policy needs to remain restrictive.

Following these comments, the US Dollar (USD) Index, a measure of the USD’s performance against a basket of major currencies, experienced a slight uptick. As of the latest update, the index was nearly unchanged for the day, standing at 102.56.