Fed's Dudley speaks with reporters ahead of his retirement

He adds:

  • fiscal policy to add lots of stimulus to US economy
  • need to keep inflation in check to safeguard employment
  • rate peak in this cycle may be lower than in past
  • says Fed policy to eventually become slightly tight
  • rates may have to push slightly above neutral
  • fiscal path unsustainable, could affect rates policy through 2020
  • sees risk that trade, immigration policies could crimp US economy capacity

Back in November Dudley announced he would retire from the Fed in mid-2018. He is the president of the New York Fed and as such has a permanent spot on the FOMC board.