Bill Dudley was quite upbeat in a recent interview with Benyamin Appelbaum:
…So I think the U.S. economy is still on a decent trajectory, above-trend growth, growth that will cause the labor market to continue to tighten, which is what we would like, and I think we’ll see gradual upward pressure on wages, which is desirable, and then hopefully inflation will start to track back toward our 2 percent objective.
“Standards” have really dropped!
And the Fed keeps on undershooting (even if you consider only its inflation target).
As to the “labor market continues to tighten”, policymakers like Dudley should at least look at what their own estimate of changes in labor market conditions is telling.
Since the Fed´s tightening bias took over in mid-2014, the index has shown the opposite, even turning negative since the start of the year!