Fed's Daly: Policy is in a very good place

• Policy is in a very good place
• Risk of over tighten and under tightening are balanced
• News on inflation has been fairly good
• It is far too early to declare a victory
• Not ready to say what that next move will be.
• Policy is significantly restrictive
• Not sure policy restrictive enough at current settings
• Need to watch data to drive next rate decision
• “Data dependent” is about how you putting all the reports together
• I don’t want to discount that is in a good place for policy
• I don’t know if we are sufficiently restrictive
• Unsure if inflation will come down where we need it to
• Outlook for economy is positive.
• Should not be surprised about the volatility in the bond market amid uncertain outlook
• Financial conditions are tighter than they were, they are remaining tight which is helping to bring balance back to the economy
• If financial conditions ease more Fed would need to take note
• If inflation doesn’t ebb further we would likely have to tighten again
• Sufficiently restrictive policy is something that clearly lowers inflation

            This article was written by Greg Michalowski at www.forexlive.com.