Fed's Dudley: Outlook hasn't changed much

Fed's William Dudley speaks in New Jersey

• Inflation still short of Fed's target but core remains quite stable
• Downplays risk of recession but says current expansion is " a bit long in the tooth"
• Economic situation hasn't changed much since Dec FOMC
• Some recent softening of data suggests a relatively weak Q4
• Sees rate hikes on a path of early and slow not late and fast
• Is most concerned about inflation expectations becoming unanchored to the downside
• Auto sales boom may be close to cyclical peak
• Sees a further pull back in the US energy sector and manufacturing will stay soft this year
• Bond market reaction to lift off has been very mild

The bond market reaction may have been mild but it's picking up now