Dudley came with a dovish tone - ANZ
|Analysts at ANZ explained that the New York Fed President (and FOMC heavyweight) Bill Dudley spoke, and sounded a dovish tone.
Key Quotes:
"In his prepared remarks he noted that “inflation is expected to return to 2% over the medium term”. At first glance, he appeared to be toeing the standard line on inflation but in the Q&A with reporters he sounded a little more dovish.
“I do think I expect inflation to also start to move higher in the medium term but probably not get all the way back to 2% on a year-over-year basis, because remember, we’ve had these very weak inflation readings for a number of months,” he said. “So we’re not going to get to a year-over-year number of 2% until some of these very low readings drop out of the statistics six to 10 months from now”. Market expectations for a Fed hike by year end stand at around 40%."
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