Fed's Dudley says recent economic news suggests the economy is slowing

Dudley now talks shop on rates and the economy

• Says if economy performs in line with his forecasts he would still be in favour of hiking this year
• Fed has not been doing well on communicating
• Fed has been clear on what is driving its decisions
• Uncertainty about China outlook created uncertainty about US outlook
• Fed wants further improvement in labour market
• Fed has a clear strategy but economic outlook is unclear
• What's unclear right now is the economy

Talk about communication problems. Dudley's the poster boy for that right now. He's still ready to hike if his forecasts play out, yet has done nothing but tell us things are getting worse and that they're not clear. That's now weighing on the buck which headed down to 118.30