Federal Reserve (Fed) Bank of San Francisco President Mary Daly told CNBC on Friday that cooling inflation shows that the Fed's monetary policy is working, per Reuters.

Key takeaways

"Fed is not done yet but PCE data is good news."

"Getting evidence that policy is tight enough."

"It's taking longer for policy to work but it is working."

"If inflation stays sticky or comes down slowly, rates would need to be higher for longer."

"If inflation comes down or labor market falters, can adjust policy."

"Too early to tell on policy."

"Will pay attention to both sides of Fed mandate."

"Hearing from business CEOs they already feel uncertain."

"Fed is apolitical, won't talk about presidential debate."

"Monetary policy is working."

Market reaction

These comments failed to have a noticeable impact on the US Dollar's valuation. At the time of press, the US Dollar Index was down 0.05% on the day at 105.85.