Feds Waller: Increasingly confident policy is well-positioned to slow economy

<ul><li>Need some improvement in services inflation X housing for overall inflation to reach 2%. </li><li>Increasingly confident policy is well-positioned to slow economy, get inflation back to 2%</li><li>Cannot say for sure if Fed has done enough</li><li>Data over the next couple months will hopefully tell if the Fed has done enough</li><li>Recent loosening of financial conditions a reminder to be careful about relying on market tightening to do Fed's job</li><li>Encouraged by signs of moderating economic growth</li><li>Inflation still too high, too early to say if slowing will be sustained</li><li>Supply-side problems mostly behind us. Monetary policy will need to do the work from here.</li><li>Premature to rely on productivity growth gains to guide stance of Fed policy.</li><li>Consumer spending is calling, manufacturing and nonmanufacturing activity has slowed.</li><li>Labor market is cooling off, but still fairly tight and will watch closely.</li><li>Need some improvement in services inflation ex housing for overall inflation to reach 2%</li><li>Will closely monitor goods, services prices in coming weeks to see if inflation still on downward path.</li></ul><p>Fed Waller is a Governor on the Federal Reserve board which gives him a permanent vote on policy.</p><p>Comments are hopeful for the soft landing with the careful eye still on inflation.</p><ul><li>Stocks remained steady and near unchanged.</li><li> Yields are modestly lower in the short end and modestly higher out the curve</li></ul>

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