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William Dudley: Fed might increase the interest rates, sooner than market expectations
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Loading...The president of New York Fed, William Dudley, expects higher economic growth and faster hike of the interest rates.
This note ot the public, would at least stop the falling of the value of dollar in the short term.
The market shouldn't be ruling out the possibility the Federal Reserve will hike interest rates again this year, William Dudley, president of the New York Fed, said on Monday.
"Market expectations, to my eye, derived from federal funds futures prices, which price in no more than one 25 basis-point rate hike through the end of 2017, … appear to be too complacent," he said.
The Fed president, also expects economic growth of 2% on yearly basis.
"If the upcoming information validates my view of the outlook, then U.S. monetary policy will need to move at a faster pace than implied by futures prices to a more neutral posture as the labor market tightens further and U.S. inflation rises," Dudley said.
Additionally, Dudley noted that the market didn't appear to be giving much weight to the possibility that the economy could grow faster than expected.
"The risks to growth from Brexit and other international developments could fade away. If such events were to occur, this might necessitate an even faster pace of adjustment," he said.
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