In contrast to the comments made by the Feds Plosser, FOMC voting member William Dudley is more dovish in his comments made in speech in New York.

Specifically, he said:

  • The trajectory of growth continues to disappoint
  • Expects inflation will drift higher this year
  • Sees a considerable amount of time between the end of QE and the rate increases
  • Anticipates long-term rates likely to be lower than historic norm
  • Sees economic headwinds likely to persist for many years
  • Inflation unlikely to Klein sharply in next year or two
  • Sees economic slowdown 1st quarter as transitory
  • Expects fiscal restraint to be very modest in 2014 and 2015
  • Acknowledges that housing confronts several significant headwinds
  • Predicts 3% growth for rest about 2014 and a quickening pace in 2015
  • Comments that the crisis in Ukraine poses wildcard¬†Economic Outlook
Q&A session:
  • Fed takes very seriously financial stability
  • See some pockets of concern on stability
  • Financial stability is on par with monetary policy
  • Crisis showed importance of tracking stability
  • Does not see economy suffering from distortions
  • Volatility and markets unusually low and is a cause for concern. Says low volatility and markets may indicate complacency
  • Reiterates at the performance of economies been very disappointing
  • Labor markets are tightening spurring inflation but adds that inflation expectations, or will entered
  • US didn’t experience usual cyclical rebound

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