President of Federal Reserve Bank of New York William Dudley, in the Q&A now

  • Federal Reserve need to communicate clearly to financial markets
  • Some Federal Reserve speakers are more important than others
  • Fed Chair comments reflect the consensus of the FOMC

Headlines via Bloomberg

More:

  • Dollar funding costs higher due to money market reform
  • US not at maximum sustainable employment
  • Federal Reserve still under its 2% inflation goal

Those final 2 comments are very dovish indeed ... back pedalling on December?

More:

  • Quarter point rate hike later this year is no that big a deal
  • If economy stays on trajectory, expects rate hike this year
  • No urgency to tighten aggressively due to recent flat unemployment rate

Backpedal on the backpedal!