Dudley Says It’s Important for Markets to Grasp Fed’s Thinking
- Says investors should understand Fed’s likely reaction to data
- Comments follow concerns raised in April FOMC meeting minutes
BlackRock's Rieder: Data Downtrend Makes Fed Hike Harder
Federal Reserve interest-rate policy is dependent on incoming economic data, and it’s important for investors to understand how it informs the U.S. central bank’s rate decisions, said Federal Reserve Bank of New York President William Dudley.
“Data releases that are close to our expectations have little additional impact on the forecast, while data releases that deviate significantly from our expectations can lead to more significant revisions of the forecast,” Dudley said Thursday in remarks prepared for a media briefing in New York. "It is, therefore, important for market participants and households to be able to follow the data along with the FOMC and to understand how we are likely to interpret and react to incoming data."