Fed's Daly encouraged by falling CPI but warns against declaring end of hikes

<ul><li>Recent data showing falling inflation “very, very encouraging”</li><li>Refused to rule out rate hikes, said they should be “thoughtful, take our time, not rush to judgment and not make declarations”</li><li>“We have to be bold enough to say ‘we don’t know’ and bold enough to say ‘we need to take the time to do it right’.”</li><li> “What I worry about is that without a sufficient amount of information about whether we’re really on that disinflationary process that brings us back to 2 [per cent], we have to ‘stop-start’"</li><li>A stop-start would hurt credibility</li><li>Indicated little concern about sharp fall in yields recently</li><li>“None of the concerns that I’m hearing are really about a dire, fall-off-the-cliff economy."</li><li>Rate cuts are “not happening for a while”</li></ul><p>This isn't the strongest push-back against the market, which is currently pricing in zero chance of a Fed hike going forward.</p>

This article was written by Adam Button at www.forexlive.com.