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Dudley's speech to be dovish?

FRB NewYork

Today Bill Dudley, the head of the NY Fed will be speaking. His speech will be on the local and regional economic situation. But during the Q&A session at the latest Dudley will no doubt have to talk about the events of the past days and their effects on US monetary policy. 

Traditionally the heads of the Federal Reserve Bank of New York are assumed to be supporting the interest of Wall Street. And that usually means they are expected to prefer cheap money and to not like rate hikes. Dudley, the known dove, meets this prejudice. 

"In view of the recent sell-off on the US stock markets it would therefore suggest itself that Dudley might sound much more skeptical than was previously the case. Let us not forget, the last time Dudley commented on "rate hikes" (on 12th August) signaling a rate step "in the near future" the S&P500 index stood at 2089", says Commerzbank. 

Yesterday it closed below 1868. If the prejudice was correct Dudley would have to signal an about-turn today.

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