Recent inflation readings more encouraging but hard to now if on track to price stabilityWe have made a lot of progress on inflation, still work to doNearer to a point where benign outcome on labor market could be less likelyMust fully restore price stability without a painful disruption to the labor marketIf inflation falls more slowly than expected, policy rate must sty higher for longerIf there are gradual declines in inflation, slow labor market rebalancing then the Fed an normalize over timeAt 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.
