Fed Vice Chair Randal Quarles said Fed is “data dependent” but “not reacting to every wavering of the needle across the dial”. And he emphasized that “we have described in all the communications tools a path that is pretty clear”. Fed is “following a strategy and taking account of data over time as it comes in and in response to significant changes in direction.”
Meanwhile, Quarles also said discussions regarding Fed’s rate path have put too much emphasis on netural rate. And, “its utility as the central organizing thought around how you are conducting monetary policy becomes less.”
