9 Apr 2015
Fed’s Dudley and Powell and their opposite views on rates lift-off – DB
FXStreet (Edinburgh) - Analysts at the German lender Deutsche Bank reviewed the recent speeches by Fed members W.Dudley and J.Powell.
Key Quotes
“Following the release of the minutes, the Fed's Dudley yesterday reiterated his more dovish view of late”.
“He said that the intention of the Fed should be conservative and that there are strong arguments for being a little on the late side before reiterating the dependency on data for the timing of liftoff”.
“Fed Governor Powell, also speaking yesterday, was more hawkish however, saying that he expects a cycle of rate hikes to begin later this year and possibly start as early as the June meeting”.
“Like other recent Fed commentary, Powell seemingly placed more importance on the pace of liftoff rather than the date however, saying that ‘from a macroeconomic perspective the precise timing of liftoff is less important than the path of subsequent additional rate increases’ and that ‘if the economy continues on its expected path, it will be appropriate for a time to increase rates fairly gradually’.
Key Quotes
“Following the release of the minutes, the Fed's Dudley yesterday reiterated his more dovish view of late”.
“He said that the intention of the Fed should be conservative and that there are strong arguments for being a little on the late side before reiterating the dependency on data for the timing of liftoff”.
“Fed Governor Powell, also speaking yesterday, was more hawkish however, saying that he expects a cycle of rate hikes to begin later this year and possibly start as early as the June meeting”.
“Like other recent Fed commentary, Powell seemingly placed more importance on the pace of liftoff rather than the date however, saying that ‘from a macroeconomic perspective the precise timing of liftoff is less important than the path of subsequent additional rate increases’ and that ‘if the economy continues on its expected path, it will be appropriate for a time to increase rates fairly gradually’.