New York Federal Reserve President Dudley delivered a speech earlier, the key points (IMO):
Now the Q&A:
- Inflation has come off sharply this year, "certainly a surprise"
- Weak US inflation has caused investors to push back expectations for policy tightening
- Disruption from Hurricane Harvey could lead to some gas price inflation
- Not ready to 'throw the Philips curve out the window' though potential US employment may be higher than thought
- Yet unclear whether weak inflation is temporary or more longer-lasting; next six months will be key to understand
- Does not expect to adjust bond run-off plan based on moves in market yields
- Re-appointing Yellen Fed chair would be 'fine choice'
- US bond market yield curve currently 'average', not too flat
And, that's it for the audience Q&A, though there is likely to be some media Q&A to come