Favors gradual Fed rate hikes: Fed's Dudley

One of the most influential Fed policymakers, New York Fed President William Dudley, said on Monday that he favors gradual rate hikes if the US economy stays on its current recovery trajectory.

Key quotes: 

•    The Fed isn't far from reaching its dual mandate
•    Favors gradual hikes
•    It is premature to judge how fiscal policy could influence rate hikes
•    Monetary and fiscal policies must be well aligned
•    Will adjust his views on hikes as the considerable fiscal uncertainty abates
•    Recent financial market tightening is not greatly concerning
•    The economy is in reasonably good shape and wage growth is firming
•    Expects 1.8% GDP growth, or a bit more, in 2017

The comments reaffirmed market expectations that the Fed would certainty raise interest-rates at its December meeting and but failed to provide any impetus to the markets.