Fed's Dudley (dove, FOMC voter): Timing of Fed rate hikes is data dependent; reiterates pace of tightening will depend on market reaction and the economy
- Still hope rate hikes will be possible in 2015, cannot say when normalization will happen
- Expect some market turbulence when rate lift off occurs
- Unemployment rate is at levels that will push gains in income, rate to reach 5% by the end of 2015
- Confident that inflation will trend back to 2% over time
- Economy to pick up again, mirroring performance in 2013 and 2014- Stronger USD has slowed US economic growth
- Even after the first rate hikes, policy will remain pretty easy