Fed's Daly (2027 voter) says a rise in long-term bond yields is a global issue, which reduces its usefulness as a signal for Fed

YIELDS Making the case that the short end is reacting to the data. Yields show market understands the Feds reaction function. US TREASURY ANNOUNCEMENT QUESTIONS Avoid question, says Fed has a dual mandate and they have the tools to achieve their ends. Reiterates the Fed is focused on its job with regards to its dual mandate. Do not want to worry about the mechanics, outcome is more important. INFLATION Modal outlook expects for inflation pressures to fade, but notes that we could have further shocks in the future that could change that situation. Within the inflation data the technology price gains there a small part of the overall indices; don't see that pushing into price inflation at large, will be looking to see if this spills over into consumer prices. Does not think it is correct to talk about the risks of higher inflation; Fed still has to watch these things. POLICY Policy is in a good place. She is watching markets. Reiterates that she was supportive of the July hold. Not seeing signs of any worrisome dynamics forming ahead of the FOMC. Still in a good place to keep watching the data. LABOUR MARKET Sticky service pricing and shocks is one of the reasons that labour market conversation has been where it is. Reiterates she doesn't see the job market contributing to inflation at the moment. Describes labour market as low-hire, low-fire, adds this is an uncomfortable stability that the Fed is not used to. CONSUMERS Consumer is still spending, however it is slowing. Does not see anything fagile yet. CREDIBILITY Does not see Fed credibility at risk.