Fed's Daly: Bumpiness of inflation data so far this year has not inspired confidence
Recent inflation readings more encouraging but hard to now if on track to price stabilityWe have made a lot of progress on inflation, still work to doNearer to a point where benign outcome on labor market could be less likelyMust fully restore price stability without a painful disruption to the labor marketIf inflation falls more slowly than expected, policy rate must sty higher for longerIf there are gradual declines in inflation, slow labor market rebalancing then the Fed an normalize over timeAt this point, we have a good labor market not a frothy oneNot even this dove is thinking about cutting rates yet. There will be a Q&A after the speech. This article was written by Adam Button at www.forexlive.com.
- Recent inflation readings more encouraging but hard to now if on track to price stability
- We have made a lot of progress on inflation, still work to do
- Nearer to a point where benign outcome on labor market could be less likely
- Must fully restore price stability without a painful disruption to the labor market
- If inflation falls more slowly than expected, policy rate must sty higher for longer
- If there are gradual declines in inflation, slow labor market rebalancing then the Fed an normalize over time
- At this point, we have a good labor market not a frothy one
Not even this dove is thinking about cutting rates yet. There will be a Q&A after the speech.
