The comments from the Fed’s Dudley to New York
- Surprised by the persistence of the inflation deficit below 2%
- Always appropriate to the gradual removal of policy accommodation
- Expects inflation to rise and stabilize around 2%
- Expenditure of the advance, and investments should continue to increase
- Waiting for surprisingly low inflation rebound in the medium term
- Inflation can be held in place by more «fundamental structural» factors
- The weakening of the dollar and solid growth abroad also suggest that the trade sector will no longer be a dampening effect on economic growth
- Full speech
The subject of the speech was » The monetary policy outlook and the importance of higher education for economic mobility.
These observations are similar to what he said recently. I don’t see a signal here, he was optimistic/gradual hike to train for a certain time.
Dudley will take questions from the audience later.