(Reuters) - San Francisco Federal Reserve Bank President Mary Daly on Monday said she is "more confident" U.S. inflation is headed toward the Fed's 2% goal. 

"It's clear inflation is coming down closer to our target. It's clear that the labor market is slowing and it's to a point where we have to balance those goals," Daly said at an event in Hawaii.

And while the Fed has so far left its policy rate unchanged, its recent shift in its communications to acknowledge the risks to its two goals are in balance is in itself a policy adjustment, she said.