Fed's Dudley not paying much attention to signals from bond market, reports say

Alexander Bueso Sharecast | 19 Jun, 2017 14:31 | | |

William Dudley

Stay the course, the head of the Federal Reserve bank of New York said at the start of the week.

In remarks made at a roundtable discussion in Pittsburgh, William Dudley reportedly said he expected wage growth to kick-in as the jobs market continued to tighten, pushing inflation towards the Fed's target.

Neither had the US central bank's four interest rate hikes thus far in the current cycle led to tighter financial conditions, he said.

Quite the contrary, stopping now might be "dangerous" for the economy. The Fed needed to keep moving rates higher in order to avoid being forced to move more rapidly in the future - which might trigger a recession.

Dudley also reportedly said he was not inclined to attach much weight to signals of concern coming from bond markets.

As of 1428 BST the yield on the benchmark 2-year US Treasury note was higher by three basis points at 1.34% and than on the 10-year note by two basis points to 2.17%.

More news

18 Aug Europe close: Stocks edge slightly higher at the end of the session

Stocks pared early losses as traders digested a terrorist attack on Barcelona overnight and monitored the news-flow coming from the White House.

18 Aug Weeky review

The FTSE 100 finished the week almost flat, up 14.02 points or 0.19%, at 7,323.98.

18 Aug London close: Risk aversion grips FTSE, stocks lower on Trump and Barcelona attacks

London's FTSE 100 index fell below a key technical level as Friday's session wore on, with travel stocks leading the retreat after the terror attacks in Barcelona and the large cabal of overseas focused companies hit by the dollar's weakness amid renewed concerns about the US Presidency.

18 Aug BowLeven appoints new director

AIM-listed oil and gas group, BowLeven announced on Friday that Matt McDonald would be appointed to the firm's board as non-executive director with immediate effect.

18 Aug Week ahead: Not everything that happens at Jackson Hole stays there

In the coming week, the spotlight will be on the Federal Reserve bank of Kansas City's Symposium in Jackson Hole, Wyoming.

18 Aug Acacia remains a 'buy' for HSBC but target price slashed

HSBC cut its target price for Acacia Mining by 47% but kept its 'buy' recommendation in place as the months-long spat with the Tanzanian government still hangs over the company.

18 Aug US open: Stocks flat heading into the weekend, political ruckus weighs

Wall Street is essentially flat heading into the weekend after the head of the University of Michigan's consumer confidence survey said recent events in Charlottesville were likely to take their toll on sentiment.

18 Aug FTSE 250 movers: Hikma still looking ill; Kaz Minerals buffs up

Hikma Pharmaceuticals shares continued their downward spiral as HSBC slashed their target price, telling clients its first half numbers contained lower guidance for generics and a tougher outlook for injectables and branded drugs.

18 Aug Calpine agrees to be acquired for $5.6bn in cash

Shares of Calpine Corporation surged after news broke that the American power generation company had agreed to be acquired by a consortium led by Energy Capital Partners.

18 Aug FTSE 100 movers: Airline shares down after Barcelona attack; Upgrade boost for Mondi, RSA

The Barcelona attack and disintegrating relationship between US President Donald Trump and the business community made for a very heavy splash of red among the Footsie on Friday.