NY Fed dove Dudley repeated the "gradual rate hike" anthem
NY Fed dove Dudley repeated the "gradual rate hike" anthem that has been prevalent among recent Fedspeakers, despite "surprisingly low" inflation, which he expects to rebound in the medium-term. He views falling unemployment and dollar (it has been rebounding of late), and financial conditions as "reasons to tighten." He thinks that inflation has been held down by fundamental structural issues and hopes for clarity after the hurricane impact, which will boost growth over time. Dudley is onboard with economic fundamentals remaining "quite favorable." Overall this is fairly bullish on the outlook, in line with his recent views, while indicative of ongoing cautious policy normalization. After post-employment swings the dollar index is slightly lower below 94.00, yields are marginally above session lows and stocks are in the red.