Fed's Dudley: Wages and inflation should pickup, pleased with economy

Author: Adam Button | Category: Central Banks

Dudley strikes a similar tone to Yellen

  • Unemployment and inflation levels "pretty good place to be"
  • "Very confident" that there is "quite a long ways to go" in the upcoming expansion
  • US growth not well distributed across economy
  • Confidence levels are "very, very high"
  • US economy is pretty close to full employment

Dudley's comments strike a similar tone to Yellen, if not more optimistic. On Friday, the comments from Kaplan showed some worry about low inflation but Dudley basically dismisses them.

He's on a business roundtable in Plattsburgh, NY, so more comments may trickle out.

More:

  • Wage growth pretty consistent with productivity growth
  • Not concerned that that automation will take everyone's job
  • Wage growth to quicken a bit more as jobs market tightens
  • Flatter yield curve not a negative signal for the economy

Dudley is a ray of sunshine on a Monday morning.

  • Doesn't want to slam on brakes, cause a recession
  • So far things are going reasonably well