Comments from NY Fed President Dudley
- Pressure on labor resources increasing 'quite slowly'
- 'Inflation is simply not a problem'
- Optimistic that economic expansion will continue in the next few years
- Use of housing debt to finance consumer spending has waned, most wealth from rising house prices locked up in homes
"The risk that the Fed will snuff out the expansion anytime soon seems quite low because inflation is simply not a problem," Dudley said. "The economy is not growing much above its sustainable long-term pace" and "pressures on labor resources have been increasing, but quite slowly."
The message was dovish and his comments about the dollar were matter-of-fact, not lamenting the dollar's strength like Donald Trump did in the WSJ earlier today.
"The recent strengthening of the dollar will put downward pressure on import prices and limit the ability of domestic producers to raise their prices," Dudley said.
