NY Fed's Dudley expects a rate hike this year
NY Fed's Dudley expects a rate hike this year, according to comments in a WSJ interview. Every meeting is live, he reiterated, but gave no clarity on November of December (the markets doubt November action due to the presidential election). Though he was upbeat on the economy, he also noted various uncertainties to the outlook, including how much more the labor market can improve before altering inflation, as well as long term growth and interest rates. He showed no urgency to resume tightening, claiming growth is just a bit above trend, while the labor market is tightening only slowly and inflation is below the 2% objective. "Odds are the policy path will be gentle," he said, consistent with the dot plot and other Fedspeak advocating gradualism.