Fed's Kaplan: Reducing asset purchases is first step for removing accommodation

"The first step for withdrawing accommodation would be to reduce the Fed's asset purchases," Dallas Fed President Robert Kaplan told CNBC on Tuesday, as reported by Reuters.

"I am not going to prejudge when the Fed is going to start seeing substantial further progress on dual goals," Kaplan added and said that he would not be an advocate of using monetary policy to distort the pricing of the Treasury curve. 

"I have not seen any evidence of politics influencing FOMC Chairman Jerome Powell or other officials," he further noted. 

Market reaction

The US Dollar Index continues to trade with strong gains around 92.15 following these comments.