Comments from NY Fed's Dudley:
- Significant global downturn and/or dollar strength could hurt US
- The Fed will take deteriorating finances more seriously if they persist
- Must find out if financial conditions reflect the economic reality
Translation: We see what's happening in markets and we won't hike again until we're fairly sure there's nothing happening in the global economy that will hurt the US.
Dudley is on the dovish side and these comments aren't a huge surprise but a wave of heavy US dollar selling is unfolding, including a 50-pip rally in EUR/USD.
