Speaking in an interview with WSJ

  • There's a reasonable case for interest rates to rise in Dec meeting
  • Not the best time for fiscal stimulus when economy is close to full employment
  • Premature to judge how fiscal stimulus would influence interest rate decisions
  • Any tax changes would need to be considered as the Fed updates its forecasts
  • Doesn't think that asset prices are "grossly inconsistent" with the economy's performance
  • Inflation a little under 2% is not a huge problem
  • Fed can afford to be patient as it waits for wage acceleration

Dollar is not particularly fussed by his comments thus far. Very by-the-book from Dudley. He's set to retire in mid-2018 once his successor is named.

USD/JPY hit session lows just now of 112.28 but is now trading at 112.34, as US 10-year yields gave back all of yesterday's gains - now down to 2.37%.