The New York Fed’s President and CEO William (Bill) Dudley just uttered one of the silliest statements of all time at a business forum in Plattsburgh, New York.
(Bloomberg) — Federal Reserve Bank of New York President William Dudley sounded a positive note on the U.S. economy, saying the central bank wanted to tighten monetary policy “very judiciously” to avoid derailing the expansion that began in mid-2009.
“I’m actually very confident that even though the expansion is relatively long in the tooth, we still have quite a long way to go,” Dudley said Monday in Plattsburgh, New York.
Yields on U.S. Treasuries rose and the dollar advanced after Dudley’s comments.
Dudley also said that a flattening (Treasury) yield curve is not a bad sign for the economy.
Well, that was a silly thing to say because since the 1970s, the US Treasury curve has always flattened before a recession.
True, we live in a global economy where numerous nations continue to struggle with low growth. And global Central Banks continue to keep their benchmark rates near zero.
Or is Dudley doing his equivalent of “Remain calm! All is well!” from Animal House?