In comments on Friday, St Louis Federal Reserve President Bullard stated that the economic data had been weak since the last FOMC meeting in March with lower than expected inflation and a slowdown in jobs growth.
He added that the decline in long-term yields and inflation expectations seen after the March rate increase suggests that the Fed may be moving too fast in raising interest rates.
He also commented that there was no evidence yet that low unemployment is raising the risk of a faster than desired inflation rate.
Bullard has been on the dovish spectrum of the FOMC over the past year and at the beginning of the year expected that one rate hike would be sufficient. In this context, dovish comments are no real surprise.
The dollar did, however, dip lower following the remarks with USD/JPY trading at 111.10 from 111.25.
Markets will remain on high alert for comments from key Fed officials over the next two weeks for any signal on June policy intentions.