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