{"id":35135,"date":"2018-06-16T07:40:59","date_gmt":"2018-06-16T12:40:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35135"},"modified":"2018-06-16T07:40:59","modified_gmt":"2018-06-16T12:40:59","slug":"ny-fed-president-dudley-complains-unemployment-is-too-low-rate-hikes-needed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35135","title":{"rendered":"NY Fed President Dudley Complains Unemployment is Too Low, Rate Hikes Needed"},"content":{"rendered":"
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NY Fed President Dudley Complains Unemployment is Too Low, Rate Hikes Needed<\/a><\/h3>\n<\/div>\n
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NY Fed President William Dudley is worried about the low unemployment rate. He thinks the Fed needs to be above neutral.<\/p>\n<\/section>\n<\/div>\n<\/header>\n
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New York Fed President William Dudley will retire Monday. Current San Francisco Fed chief John Williams will take over.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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He departs with one more gem: Dudley Foresees Need for Fed Rate Hikes to Slow the U.S. Economy<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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\u201cThe federal funds rate will probably have to climb a little bit above neutral, because the unemployment rate is already — from most people\u2019s vantage points — below a sustainable level of unemployment consistent with stable inflation,\u201d Dudley told reporters Friday. \u201cSo, I think the move will be eventually to a slightly tight monetary policy.\u201d<\/p>\n

\u201cI\u2019m sort of expecting that the peak in the federal funds rate in this cycle will be lower than in past cycles, but I have quite a bit of uncertainty about that,\u201d Dudley said during a conference call.<\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n

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The unemployment rate is too low now, so we need to hike.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Last year he said consumers should “unlock” housing equity<\/a> to boost the economy.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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\u201cThe previous behavior of using housing debt to finance other kinds of consumption seems to have completely disappeared,\u201d and people are leaving the wealth generated by rising home prices \u201clocked up\u201d in their homes.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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\u201cA return to a reasonable pattern of home equity extraction would be a positive development for retailers, and would provide a boost to economic growth.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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By the way, the Housing ATM is Back (But it won’t work any better this time)<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Dudley is a real gem. He will be missed for the comedy he provides.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

NY Fed President Dudley Complains Unemployment is Too Low, Rate Hikes Needed NY Fed President William Dudley is worried about the low unemployment rate. He thinks the Fed needs to be above neutral. New York Fed President William Dudley will retire Monday. Current San Francisco Fed chief John Williams will take over. He departs with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[303,431,14648,13390,534,824,3650,883],"class_list":["post-35135","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-interest-rates","tag-michael-shedlock","tag-mishtalk","tag-monetary-policy","tag-unemployment","tag-us-federal-reserve","tag-william-dudley"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35135"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35135\/revisions"}],"predecessor-version":[{"id":35136,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35135\/revisions\/35136"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}