Fed’s Dudley: Fairly neutral to slightly dovish - ANZ

Research Team at ANZ, notes that the Fed’s Dudley did not display anxiousness when questioned on the Fed’s rate rise plan at a fireside chat in upstate NY yesterday and was fairly neutral to slightly dovish, not offering his direct opinion on December, but just generalised statements.

Key Quotes

“He noted that better growth will lead to higher rates and increase debt servicing costs in the future. More people entering the labour force is offering them some room to let the recovery run. The lower for longer theme was also apparent. “We're at a point where the economic expansion has room to run with inflation below our target so we have room to be gentle to remove accommodation”, he said. “You don’t want to keep people unemployed just because you think you’re already at the full employment rate, you certainly want to go as far as you can”.”