On the policy outlook:
``It is highly data dependant in that it is responding to what happens over time. So I remain comfortable with the current stance of policy. I'm alert to the fact that there are upside risks to inflation and with respect to growth, it could go either way.''
On unemployment:
``I expect it to inch up ever so slightly, not greatly but marginally. Perhaps by the end of the year to be a little closer to 5 percent."
``A period of slightly subpar growth in the economy would in principle create a little more slack in the labor markets.''
``Tight labor markets can be a source of inflation pressure and there are a lot of questions about truly how tight labor markets are."
``The unemployment rate is low enough that it should be a red flag to policy makers. ''
On whether she has a bias toward raising rates:
``I did indicate in the speech that I do remain concerned about upside risks to inflation. That is essentially what the last statement said. There are upside risks to inflation and we remain concerned. ''
From audience Q&A as reported by Bloomberg News