Comments from Dudley in the audience Q&A of his speech:
- Chinese growth has slowed a bit
- Won't comment on Chinese currency policy
- It's early days to judge impact of China FX move
- Everyone will be watching Chinese economy very closely
- Probably not inappropriate for Chinese yuan to adjust with economy
Dudley says he won't comment, and then proceeds to comment.
Everyone has gotten a bit frothy about China devaluing but you have once central bank cutting and it's economy slowing (China) and another whose economy is (supposedly) picking up and a central bank ready to hike (the US). That there would be some currency divergence is FX 101.
More:
- Low interest rates are tough on savers
- Sooner we get a stronger recover, the sooner we can raise rates
- Hopefully Fed able to raise rates 'in the near future'
- Won't comment exactly on timing of rate liftoff
