Late day article in the WSJ
IN a late day article in the WSJ, Fed's Dudley is saying he expects a rate hike in 2016. However, he says the pace of rate rises is likely to be gentle. He added that "any actions that follow in 2017 will happen slowly as the central bank tests how far the job market can go without creating inflation problems".
He did not give any clues as to when the hike might occur (early November or mid-December. The market, however, expects that the chances of a hike in November is slim (around 17%) given the meeting comes a week before the close US election. December would be a more obvious time. The market gives the chances of a December hike of about 69%.
CLICK HERE for the article.