Fed’s Daly: Time is now to step down on rate hike pace

Commenting on the October Consumer Price Index (CPI) report, San Francisco Fed President Mary Daly noted that it was good news but added that one month of data was not enough to declare victory, as reported by Reuters.

Additional takeaways

“Inflation expectations have been remarkably well anchored.”

“We are not hanging our hats on inflation expectations.”

“We have to be resolute to bring inflation down.”

“We are going to continue to adjust policy until that job is fully done.”

“Labor market report showed easing, but not at all close to what we need.”

“Job growth stronger than we need it to be.”

“Policy is now modestly restrictive.”

“We need to watch data, there is considerable uncertainty.”

“Time is now to step down on rate hike pace.”

“There’s a lot of uncertainty about what will be the peak fed funds rate.”

“Support a gradual pace of getting to the peak fed funds rate.”

“Pausing is not a subject of discussion.”

“The real conversation should be about the level at which we hold the interest rate.”

“Likely some more rate hikes in our future.”

“Would rather move a little too high on rates than not high enough.”

“We don’t want to overtighten, but do want to fully do the job.”

“We need to make sure inflation doesn’t get embedded.”

Market reaction

The US Dollar selloff continues after these comments and the US Dollar Index was last seen losing nearly 2% on the day at 108.32.