Comments from Fed's Daly (non-voter) also.......>

FED: Comments from Fed's Daly (non-voter) also crossed in the NY-Asia crossover.

- She noted that the Fed needs to be cognisant of the risks of running the

economy hot, but suggested that she has preference for doing so given low

inflation and the uncertainty re: full employment.

- On inflation she noted that "alternative strategies such as average inflation

targeting and price-level and nominal income targeting explicitly include a

make-up strategy. They ensure inflation misses balance out over time. While no

magic bullet, these make-up approaches recognize that we'll need to be

intentional - rather than opportunistic - about offsetting inflation underruns."

- She also highlighted that she is "closely watching the high level of corporate

debt, particularly among riskier firms. While I don't view current corporate

indebtedness as posing an acute financial stability risk, this vulnerability

could amplify the macroeconomic impact of any shocks to the economy."

- A Q&A session is ongoing.