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

<ul><li>Policy is in a very good place</li><li>Risk of over tighten and under tightening are balanced</li><li>News on inflation has been fairly good</li><li>It is far too early to declare a victory</li><li>Not ready to say what that next move will be.</li><li>Policy is significantly restrictive</li><li>Not sure policy restrictive enough at current settings</li><li>Need to watch data to drive next rate decision</li><li>"Data dependent" is about how you putting all the reports together</li><li>I don't want to discount that is in a good place for policy</li><li>I don't know if we are sufficiently restrictive</li><li>Unsure if inflation will come down where we need it to</li><li>Outlook for economy is positive.</li><li>Should not be surprised about the volatility in the bond market amid uncertain outlook</li><li>Financial conditions are tighter than they were, they are remaining tight which is helping to bring balance back to the economy</li><li>If financial conditions ease more Fed would need to take note</li><li>If inflation doesn't ebb further we would likely have to tighten again</li><li>Sufficiently restrictive policy is something that clearly lowers inflation</li><li>Has open mind about where neutral rates now stand</li><li>It's hard to know why yields are rising. </li><li>Resist temptation to think one thing is driving the economy</li><li>Anecdotal data important for forward-looking policy decisions</li><li>Aspiration to achieve a soft landing while controlling inflation</li><li>For me that aspiration looks like a little bit of low potential growth</li><li>Does not see economy falling into a deep downturn</li></ul><p>Comments from Daly were largely neutral and noncommittal</p>

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