NY Fed president on the wires

  • September hike is possible

  • Headline inflation is drifting up a bit (obviously prepared remarks before today's numbers ;-) )

  • We seem to be on a trajectory for 2% inflation

  • Core inflation has been flat

  • Economy will be generally better in H2

  • If we raise rates this year it will be good news

  • Still expects more than one hike before the end of 2017

  • US Treasury yields are pretty low given the economic environment
  • Election won't weigh on Fed rate decisions
  • It's premature to talk about raising the Fed's inflation target
  • It's hard top judge if the election uncertainty is affecting the economy
  • At worst, the election may be delaying investment

Dudders can paint whatever hawkish or bullish picture he wants but the market doesn't believe it.