Federal Reserve NY President Dudley
- Balance of risks to his US economic outlook 'starting to tilt slightly to the downside'
- Uncertainty to his outlook has increased, downside risks have crept up
- Says he has 'very modestly' marked down 2016 US economic growth outlook
- Says could downgrade outlook more significantly if financial conditions continue to tighten
- Now somewhat less confident about inflation's return to 2-pct goal over medium term
- Expects US GDP to grow about 2 pct in 2016
- Sees US unemployment rate falling to 4.75 pct, his view of full employment
- Says drop in inflation expectations cause for concern
- Further declines in survey-based measures of inflation expectations would be worrisome
- Says heightened emerging market volatility not surprising
- In most cases emerging markets have the tools, resources to manage current difficulties
- Weakness in emerging market economies is one reason Fed rate rises should be gradual
- Says closely monitoring global economic, financial market developments
Dudley leaning slightly to the dovish side a little more with these comments.
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Dudley speaking at an event co-hosted by the NY Fed and People's Bank of China, in Hangzhou, China
Q&A still to come