Fed's Dudley sounds a 'hopeful' note
Federal Reserve Bank of New York president William Dudley actually sounded hopeful in talking about the future of the U.S. economy.
Speaking in New York Monday, Dudley said he sees economic growth possibilities ahead, per the WSJ:
“I have to admit that I am getting more hopeful,” Mr. Dudley said in a speech prepared for delivery before an audience in Queens, N.Y. “Not only do we have some better data in hand, but also the fiscal drag, which has been holding the economy back, is likely to abate considerably over the next few years at the same time that the fundamental underpinnings of the economy are improving,” the official said.
These are especially telling remarks, as Dudley has long been a supporter of the Fed's quantitative easing programs -- and, as the Journal notes, could signal an important shift in thinking among voting members of the Fed regarding the Federal government's ongoing asset purchase program. The Fed's purchases of certain mortgage assets has led a boom in mortgage markets as rates have remained historically low.