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New York Fed President William Dudley says "Dreary Days for U.S. Economy May Be Over".
Despite some headwinds, Dudley is optimistic that America could grow closer to 2.5% to 3% in the coming year instead of the ho-hum 2% growth that has been a hangover of the Great Recession.Dudley On the Economy
"The U.S. economic outlook looks brighter, with growth likely to be somewhat above the trend of the past five years," Dudley said in a speech on Monday
In fact, Dudley thinks the economy could soon be healthy enough for the central bank to lift interest rates off the ground.
He's signaling the Fed will likely be able to raise interest rates in 2015.
"While raising interest rates is often portrayed as a difficult task for central bankers, in fact, given the events since the onset of the financial crisis, it would be a development to be truly excited about," Dudley said.
"When the [Fed] begins to raise its federal funds rate target, this would indicate that the U.S. economy is finally getting healthier," he explained.
Fed Governors tend to be among the best contrary indicators you can find, so much so that I have to wonder if a bell just rang.
Ring, Ring Goes the Bell
William Dudley is ready to sell...
But I ain't buyin' it.
Mike "Mish" Shedlock