Comments from the Fed's Dudley in New York
- Surprised by persistent inflation shortfall below 2%
- Still appropriate to gradually remove policy accommodation
- Expects inflation to rise and stabilize around 2%
- Spending should advance and investments should keep rising
- Expects surprisingly low inflation to rebound in medium term
- Inflation may be held down by more 'fundamental structural' factors
- The softer dollar and solid growth abroad also suggest that the trade sector will no longer be a significant drag on economic growth
- Full speech
The topic of the speech was 'The monetary policy outlook and the importance of higher education for economic mobility'.
These comments are similar to what he's said recently. I don't see a signal here, he's been on the optimistic/gradual hike train for awhile.
Dudley will take questions from the audience later.
