The US dollar is trading near a two-year high against other major currencies like the euro, the British pound and the Japanese yen. That follows comments by a senior US Federal Reserve official hinting at the more aggressive withdrawal of support for the world's largest economy. Governor Lael Brainard, who sits on the central bank's policy making body, says quicker action is needed to keep inflation in check. The Fed is expected to raise borrowing costs by more than usual. It's also preparing to rapidly sell off government bonds and other securities it's accumulated over the past two years.

Craig Erlam is a senior market analyst at OANDA. He says aggressive monetary policy could lead a recession in the world's largest economy.

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