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Dudley: Don't Pay Too Much Attention To The Dot Plot
Bill Dudley, president of the New York Fed, is speaking at the Bloomberg Markets Most Influential Summit. Dudley said that to hawks on FOMC, he said that the Fed has a dual mandate, and that monetary does work with a lag: "you wouldn't put all your weight on inflation side just as you wouldn't put all your weight on the labor side." Dudley said that monetary policy is operating in a different way than it has historically, and said it makes sense that people would view this with some nervousness. On inflation, Dudley said it has been quiescent because, quite simply, there is excess slack in the economy. Dudley ... (full story)