The discussion around when the Fed could hike its funds rate has once again been thrown directly into the spot light, with narrative from Fed voters Bill...

The discussion around when the Fed could hike its funds rate has once again been thrown directly into the spot light, with narrative from Fed voters Bill Dudley and Charles Plosser the key focal point yesterday. New York president Bill Dudley is a permanent voter, so his views will always be closely followed, but he gave little in the way of specific details and while he mentioned that he hopes rates can go up, he suggested it will be a considerable before the end of asset purchases and 'lift-off'. He retained the ability to adjust policy depending on financial conditions in the economy, which is not new and highlights his alignment to Janet Yellen. At the same time Mr Dudley has put out the idea that the Fed should sustain the size of its balance sheet, by re-investing the proceeds of maturing mortgage backed securities. (VIEW LINK)