It is around the corner
Fed’s Dudley (dove, voter): Initial rate hikes are a long way off, could arrive well after 6.5% unemployment level is crossed; economy may diverge significantly from FOMC forecast- Recent market expectations for an earlier rate rise are “quite out of sync” with the statements and expectations of the FOMC – If labor market conditions and economic growth were less favorable than FOMC’s outlook, asset purchases would continue at a higher pace for longer. – Fed is most likely to end QE asset purchases around a 7.0% unemployment rate, could wind down buying in 2014. Outlook depends entirely on the path of the economy. – Inflation has been weak but expected to rise over time
