Feds Dudley: Calls for cautious, gradual approach to rate hikes

• Low Inflation expectations still cause for concern
• no fundamental change in my US Outlook in recent months
• fed can use forward guidance, balance sheet, if needed
• labor market healthy, but long-term unemployed still high
• sees US jobless rate falling to around 4.75% in 2016
• PCE inflation to eventually return to 2% objective.
• Sees the US growth of about 2% in 2016, above potential.
• Subdued wage growth suggests still slack in the labor market
• limited ability to lower ratescalls for policy caution.
• Signs of softness in consumer and business spending

Dudley tends to be more dovish. His comments are in line with those of the Fed chair.