MNI BRIEF: Optimism Isn't Enough to Adjust Rates - Fed Quarles

Being an optimist on the economy is not relevant under the central bank's new operating framework, meaning the Fed will have to wait to see the data before considering policy adjustments, Federal Reserve Governor Randal Quarles said Tuesday.

Quarles said he is "one of the biggest optimists on the Committee," seeing unemployment falling pretty quickly and substantially. But "the fact that I am an optimist is not really relevant under our new framework," he said. "We shouldn't jump the gun until we see those outcomes" on inflation and employment, he added.

"I am very supportive of our outcome-based framework," he added. "I think that that will be true of the Committee [FOMC]. I think it's very critical to expect the Committee to be comfortable with inflation, somewhat over our 2% target." Former officials have told MNI the upside risk to the economy in the coming months could complicate the central bank's message that it is in no hurry to tighten monetary policy.