Let me be clear, there is no Fed equity market put. To put it another way, we do not care about the level of equity prices, or bond yields or credit spreads per se, instead, we focus on how financial market conditions influence the transmission of monetary policy to the real economy.

William Dudley

Categorized in : Money

I was always more in the camp that demand for reserves is going to be higher in the new environment because of changes in regulation, like the liquidity coverage ratio that increases the demand for high-quality assets.

business

Given that the labor market still appears to have some excess slack and inflation is below the Federal Reserve's objective, monetary policy is appropriately still quite accommodative despite the advancing age of the expansion.

business

One thing I think we can say with more confidence is that financial conditions are considerably tighter than they were at the time of the December meeting, so if those financial conditions were to remain in place by the time we get to the March meeting, we would have to take that into consideration in terms of that monetary policy decision.

business

I can't tell you when we're going to do it because it will depend on the data, we have a month until the next FOMC meeting so my view is let's see what the data is over the next four weeks.

business

We hope that relatively soon we will become reasonably confident that inflation will return to our 2 percent objective.

business

I don't favor waiting until I sort of see the whites in inflation... by William Dudley

I don't favor waiting until I sort of see the whites in inflation's eyes.

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What's unclear is the economy. by William Dudley

What's unclear is the economy.

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I see a linkage between pressure on labor market resources and my... by William Dudley

I see a linkage between pressure on labor market resources and my confidence in inflation.

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While the use of macroprudential tools holds promise, we are a long way from being able to successfully use such tools in the United States.

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The evidence to date that liquidity has diminished markedly is, at best, mixed, even if one were to interpret the evidence as indicating that liquidity has been reduced, it is not clear whether regulation is the primary driver, as other changes have played important roles as well.

business

We have a financial system that is much more resilient (since the crisis), and the available evidence suggests that this transformation has not resulted in any significant erosion in market liquidity.

business

I believe that the risks of lifting the federal funds rate off of the zero lower bound a bit early are higher than the risks of lifting off a bit late, this argues for a more inertial approach to policy.

business