FXStreet (Córdoba) – William C. Dudley, President and Chief Executive Officer, remarks at the Economic Club of Minnesota’s June Luncheon, Minneapolis.
Key Quotes
“During the remainder of the year, I expect growth to pick up somewhat. However, productivity growth will also likely rise. So there remains some uncertainty about whether growth will be strong enough to lead to further improvement in the labor market”.
“With respect to inflation, as long as growth remains strong enough to lead to further improvement in labor market conditions—and this is an important caveat—I am becoming more confident that inflation will move up toward the FOMC’s 2 percent objective over the medium term. The firming of inflation that I anticipate reflects my expectation that resource utilization will increase and the fact that some of the factors that have pulled down inflation, such as lower oil and gas prices and a firmer dollar, have already stabilized or partially reversed”.
“Putting this all together, I still think it is likely that conditions will be appropriate to begin monetary policy normalization later this year. But the likelihood and timing will depend on the economic outlook, and that will be largely shaped by the incoming economic data”.
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