Fed's Dudley: Gradual rate hikes appropriate to avoid overheating, significant inflation overshoot.

New York Fed's President William Dudley was on the wires, via Reuters, stating that gradual rate hikes appropriate to avoid overheating, significant inflation overshoot.

More headlines (via Reuters):

• Risks to U.S. growth, inflation may be shifting to upside
• More likely U.S. fiscal policy becomes more stimulative
• Now more confident inflation will stabilize at 2 pct goal
• Overseas economic outlook brightened, risks significantly lower than a year ago