Significant global downturn will hurt US – Fed’s Dudley

FXStreet (Mumbai) - New York Fed’s Dudley was on the wires today stating that a significant global downturn and/or dollar strength could hurt US economy.

He assured markets that Fed would take deteriorating finances more seriously if they persist. “Must find out if financial conditions reflect the economic reality”, he added.

The comments are slightly dovish and may not come as a surprise since financial markets stay risk averse despite Japan’s negative rate surprise.