Fed's Dudley says a September rate hike is possible
New York Fed President Bill Dudley said the US is edging closer to the time for a rate hike in an interview on Fox Business.
The comments have led to a sharp, across-the-board rally in the US dollar. USD/JPY climbed 50 pips to 100.16 from a low of 0.9954.
So the question is: Is this a game changer?
When Dudley says it's 'possible' I don't think it is. The Fed funds futures market was already priced for a 22% chance of a hike in September so it was already priced as 'possible'.
