Fed's Daly: Fed must be on watch for slowing economy

Federal Reserve Bank of San Francisco President Mary Daly refrained from commenting on the next possible Federal Reserve policy decision but reiterated that they must be very date-dependent right now, as reported by Reuters.

Additional takeaways

"Want to see if policy tightening is affecting economy."

"Banking stresses have calmed, banks are in solid shape."

"Still lots of data to get before June FOMC."

"Tighter credit conditions may be akin to one to two rate hikes."

"Fed must be on watch for slowing economy."

"Inflation expectations are well anchored."

"Do not know how deep and long credit tightening will be."

"FOMC deciding meeting by meeting is more prudent path."

"Global tightening cycle has slowed activity less than expected."

"Balance sheet draw down working effectively."

"Seeing some signs of slowing in otherwise strong job market."

"Fed forecasts only as good as they day they are printed."

"Real wage growth for most Americans overtaken by inflation."

"Not surprising to see some rise in credit troubles for some Americans."

"Would be historical anomaly to get 2% inflation with sub 4% unemployment."

"Seems completely reasonable to see unemployment go above 4%."

Market reaction

The US Dollar Index clings to small daily gains near 103.30 after these comments.