While Fed officials didn’t comment on President-elect Donald Trump's proposed policies, they said the central bank was in a ‘good place’ to respond to economic developments. Officials said they closely monitor inflation to ensure it doesn’t reignite.

Federal Reserve Bank of Richmond President Thomas Barkin said the economy is in a good place, which has allowed the US central bank to lower borrowing costs.

With inflation close to the Federal Reserve's 2% target, the labor market resilient, and the U.S. central bank in the process of lowering borrowing costs, policymakers are ready to respond if inflation pressures rise or the job market weakens,

The Richmond Fed president says that while the outlook for the U.S. economy is murky, the central bank is ready to respond regardless.

CNBC's Steve Liesman reports on the latest comments from Richmond Federal Reserve president Tom Barkin.