Fed Daly: Expects the economy to continue to slow. That is what the Fed is trying to do.

• Expect growth and labor market to continue to slow
• Expect inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term to come down
• The Fed is very good data dependent
• My views and can it change as the economy does different things
• The CPI coming down is very encouraging, but most is energy costs and in food prices
• Supply disruptions improving his causing inflation to come down
• Core services inflation excluding housing that has shown no sense that it is coming down
• Have not seen core service inflation, down as we would like
• The biggest risk out there is that inflation expectations would start to drift in response to more persistent inflation
• Inflation moving down is most likely not going to happen in the coming year
• We are determined to bring inflation down
• When you see wage growth come down it's consistent with the employment picture slowing
• Still out of balance in labor market
• December wage data was one month of data, can't declare victory
• It is still too soon to declare victory and stop rate hikes

12:44 PM ET: Stocks are dipping on the comments from daily. The S&P is up 39 points at 3934. It was trading around 3940 at the start of her Q&A. The NASDAQ index was up at 10792. It is currently at 10764.

• We don't need to see inflation get a 2% before we stop raising and start to keep rates steady
• This phase of tightening is extremely challenging
• Reasonable/likely for rates to be 5% – 5.25%
• "Meeting by meeting" means we don't want to forecast uncertain decisions
• 50 basis points or 25 basis points are on the table for the next Fed policy meeting
• During rate hikes and gradual steps gives more chance to account for lags
• Not going to wall off a 50 basis point hike as not likely
• When thinking of policy I will be paying a lot of attention to core services ex housing in CPI
• Want to bring inflation down as gently as we can
• Estimate unemployment to rise to 4.5% or 4.6%
• Would be terrific if labor market balancing would come because employers are not looking for more employees
• Would be terrific if the unemployment rate comes up less
• Expect inflation to get into the low 3% by the end of this year and then get closer to 2% by the end of 2024
• To bring inflation down faster would require an enormous labor market pain
• Changing inflation target is not on the table at all

Daly - consistent with some of the other Fed speakers - tapped the brakes that policy easing is any where close. From Daly, to get inflation to 2% quicker would require more pain in the employment sector. She therefore would prefer the course of continued tightening.to ease up to 5% to 5.25% and then see.

The Dow is up 150 points at 33780. The S&P is up 38.41 points at 3933.48. The Nasdaq is up 207 points at 10776. That is lower from when she started to speak but not by much.