Fed's Dudley: Economy can grow at above trend rate

Author: Adam Button | Category: Central Banks

Dudley in the FT

  • There are arguments for hiking or waiting
  • Financial conditions are very accommodative
  • "Three rate hikes in 2018 seems a very reasonable type of forecast" ... it could move
  • "We haven't really seen much of an acceleration" in wages
  • To the extent the dollar were to weaken that would probably create a little bit more upward pressure on import goods prices
  • I think Chair Powell will be on the same page as Chair Yellen
  • It is not an unreasonable assumption to think Fed will hike in March

Transcript here.

These are hawkish comments but Dudley is retiring soon.