Feds Barr: We are at a point where we can proceed carefully on monetary policy

<p>FOMC member Barr is on the wires saying:</p><ul><li>Fed is at a point where we can proceed carefully on monetary policy.</li><li>Most important question is not whether an additional rate hike is needed this year.</li><li>Most important question is how long we will need to hold rates at a sufficiently restrictive level. I expect it'll take some time.</li><li>Full effects of past tightenings are yet to come in the months ahead</li><li>There has been a Lotta progress on inflation.</li><li>Economic activity has been considerably more resilient than expected.</li><li>Sees higher probability than previously for a soft landing.</li><li>Labor market is tight, but supply and demand are coming into better balance.</li><li>Baseline projections is for below potential GDP growth over next year and further softening of labor market.</li><li>Monetary policy a blunt tool. Likely not appropriate to address specific financial stability threats.</li><li>Supervisors expect banks to be ready and willing to use discount window</li></ul>

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