Speaks in a moderated discussion organized by the University of California Berkeley
The topic of the discussion is "The US Economy: 10 years after the crisis"
He adds:
- Fed chair transition has been "so far, so good"
- He is not worried at all about the Fed chair transition
- Globalization has costs/benefits for world economy
- Putting up trade barriers will not make US better off.
- US needs to temper sharp edge of capitalism with workforce development and retraining
- Sees need for their global central bank communications
- He would not like to repeal Dodd-Frank; he sees more good than bad
- Capital, liquidity rules need to be permanently higher
- Fed thinks US economy is "pretty much" at full employment
- Not concerned that inflation is a little below Fed target
- Expects inflation to rebound and economy to continue at above trend pace
- Job market tightening more and a bit more wage growth
- Keeping economy at full steam to help inequality
- Fed should be looking at cryto FX vs cash.
- Confidence in USD to stay high if Fed does its job well
- A good medium of exchange has a stable store of value
Dudley's comments are more hawkish than those of Kashkari which is not much of a surprise.
Dudley - the NY Fed president - announced that he will be resigning from the Fed in mid-2018. The NY Fed President is a permanent voting member on the FOMC.