On Monday, William Dudley, President of the Federal Reserve Bank of New York, said in his speech that Fed was not going to change its monetary policy, following first optimistic news, and that the policy would evolve only when Fed would be confident about securely established recovery. He explained the decision saying that the monetary policy at the beginning of financial crisis was not aggressive enough to cope with problems, and that Fed was not going to repeat the mistake.
'If we were to see some good news on growth I would not expect us to respond in a hasty manner. Only as we became confident that the recovery was securely established, would I expect our monetary policy stance to evolve to ensure that it remained appropriate to achievement of our objective: maximum sustainable employment in the context of price stability', William Dudley said in his speech.