Quarles on the economy
Inflation may be a faulty indicator of the broader economic cycle, masking overheating
Some potential for labor force participation to rise
US economy in a good spot, data suggest strong growth
Reasons for optimism for higher potential growth rate
Amid uncertainty a gradual, predictable rate policy is best
Fed as close to dual mandate as it's been in a long time
What's the signal here? He's upbeat on the economy and is certainly not hinting at any kind of pause in the next six months. Overall, it's a hawkish message.
"Perhaps inflation is just sending a signal of people's trust in the Fed's ability to meet its inflation objective. If so, no complaints here. That is a good thing," he said. "However, a problem does arise if the Fed remains reliant on inflation as our only gauge of the economy's position relative to its potential."