Comments from NY Fed President Dudley

  • The tepid pace of the expansion reflects the fact that monetary policy was constrained by the zero lower bound
  • It is now accepted that the effectiveness of monetary policy is enhanced when the public has a clear understanding of the goals of monetary policy
  • Good communication can lead to a clear understanding of the Fed's framework
  • New York Fed staff have been conducting an extensive analysis of empirical measures of market liquidity and the effects certain regulations may have had on it. The work to date finds little evidence-based on traditional liquidity measures-of any meaningful degradation in market liquidity across key asset classes.
  • If another recession were to happen in the next few years, it is likely that the FOMC would be unable to respond with a cut of such magnitude
  • A risk management approach to monetary policy would suggest that the more concerned one is with the effectiveness of these policies at the zero lower bound, the more cautious one would be in the process of removing accommodation.
  • Full text

The comments weren't scheduled but appeared on the NY Fed website. There isn't anything that jumps out. It's the usual mix of common sense with a dovish tilt from Dudley.