Fed’s Dudley – 25 bps hike later this year ‘not that big a deal’

NY Fed’s Dudley has said that a 25 basis point rate hike later this year is not that big a deal. Moreover, there are no signs of stress in the markets despite Dec rate hike probability rising to 70%, given that Fed is way behind the curve.

Key quotes

Still sees labor market slack

We are not at full employment yet

Fed is reasonably close to inflation and employment goals