Salient to Investors:

William C. Dudley at FRB of New York said:

  • We need to see continued improvement in the labor market and other good economic news before tapering.
  • The FOMC are committed  to not allowing inflation to rise above its 2 percent target by any significant margin because we tried that in the ’60s and ’70s and it did not end well when they found out they were trading a little lower unemployment for ever-higher inflation.
  • Rising domestic interest rates and the global economic outlook pose risks to the US economy.
  • The labor market remains unhealthy with a great deal of slack.
  • Growth has not shown any meaningful pickup in momentum and the economy still needs the support of a very accommodative monetary policy.

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