Fed’s Daly: Bumpiness of inflation data so far this year has not inspired confidence

• Recent inflation readings more encouraging but hard to now if on track to price stability
• We have made a lot of progress on inflation, still work to do
• Nearer to a point where benign outcome on labor market could be less likely
• Must fully restore price stability without a painful disruption to the labor market
• If inflation falls more slowly than expected, policy rate must sty higher for longer
• If there are gradual declines in inflation, slow labor market rebalancing then the Fed an normalize over time
• At this point, we have a good labor market not a frothy one

Not even this dove is thinking about cutting rates yet. There will be a Q&A after the speech.

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