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Fed’s Daly: Fed would make monetary policy adjustment if outlook becomes substantially different

More comments continue to flow in from the San Francisco Fed President Mary Daly after she said that the last three rate cuts were made to be supportive so we don’t find ourselves in a slowdown.

Determining the level of reserves that are needed in the financial system has been a learning process.

Decisive action from the Fed succeeded in calming money markets.

The economy is in a good place and that the Fed would make an adjustment to monetary policy if the outlook becomes substantially different.

Balance sheet expansion is about liquidity not changing the shape of the yield curve.

Worried consumer expectations will fall at some point if we don’t deliver on 2% target.

The new role of central banks is to fight inflation from below the target not above the target.

Have been thinking about whether we need average inflation targeting over the business cycle.

The US dollar index flirts with multi-day tops near 97.60, as investors continue to take profits off the table on their USD shorts, despite increased risk-on trades led by US-China trade deal hopes.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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