Fed's Williams: 2% inflation is not achievable

John Williams, president of the Federal Reserve Bank of New York, said the monetary policy going forward should have a commitment to a symmetric 2% inflation goal and argued that he didn't think the 2% inflation goal was achievable.

"The monetary policy does have some limitations so it would be nice to have fiscal policy aligned when addressing downturns," Williams added. "The policy should be somewhat accommodative to support the growth of a more inclusive labor market."

Finally, Williams noted that the recent drop in productivity was consistent with the ongoing longer-run trend of moderate productivity.

The US Dollar Index ignored these comments and was last down 0.07% on the day at 97.84.