Fed's Dudley keeping an open mind - BNZ

Analysts at BNZ noted that the NY Fed’s Dudley was keeping an open mind about the new fiscal policy environment.

Key Quotes:

"He told reporters, “...we have a change in expectation about the policy, but how the policy actually shifts, that remains to be determined. It’s pretty important not to jump to a conclusion here before the policy gets set”."  

Clearly, the market isn’t prepared to take such a sanguine view at this point and is betting that Trump’s policies will lead to more debt, higher inflation, and tighter monetary policy."