Speaking after talking at community banking conference in St. Louis

The Cleveland Fed president adds:

  • Fed is reaching a phase in policy were Fed is very dependent on data about the outlook
  • gradual pace of interest rate increases still appropriate
  • one day move in US bonds not concerning
  • US divergence from other economies could feed back through dollar and other markets and would have to be factored into policy
  • not as concerned about flat yield curve
  • inflation around 2% depends on monetary policy, growth