Fed’s Dudley – Cautions Approach to Rate Hikes Appropriate
New York Fed’s Dudley, while speaking in Connecticut, said a cautious and gradual approach to rate hikes is appropriate.
Key quotes
No fundamental change in my US outlook in recent months
Signs of softness in consumer and business spending
Low inflation expectations still cause for concern
PCE inflation to eventually return to 2% objective
Subdued wage growth suggests still slack in the labor market
Labor market healthy, but long-term unemployed still high
Sees us jobless rate falling to around 4.75% in 2016
Sees US growth of about 2% in 2016, above potential
Fed can use forward guidance, balance sheet, if needed
(Market News Provided by FXstreet)
