New York Fed President William Dudley took a trip away from Wall Street and spoke in Troy, NY:
- Less confident that labor market participation will rebound
- Stronger dollar could dampen inflation pressures
- Strong dollar one of the reasons 3% GDP won’t be hit
- Sees 3% growth in 2015, unlikely to be substantially stronger
- Still sees “significant underutilization” in labor market
- Calls forecasts for mid-2015 rate rise ‘reasonable view’
This is dovish stuff and it sounds like the ‘reasonable view’ isn’t his. Dudley is right at the core of the Fed and he sounds worried on a few fronts.
He’s expected to take questions from the audience after the speech.
Update: This was the final straw to send the US dollar to the lows of the day/week.
