NY Fed’s Dudley: Unclear if bad jobs report means economy slowing

06-Apr (CNBC) — Whether or not March’s jobs reportpoints to a substantial slowdown of the U.S. economy is still unclear, William Dudley, president of the New York Federal Reserve, said Monday.

Dudley made his remarks after the U.S. economy added 126,000 jobs last month, well-below economists’ expectations of about 250,000.

Nevertheless, Dudley also said the U.S. economy faces some downside growth risk from the rising U.S. dollar and declining oil prices.

The strong dollar has led to a “significant shock” to the economy, while the drop in oil prices could lead to a further drop in energy investment.

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PG View: If the strong dollar has resulted in a “significant shock” to the economy, why would the Fed even be considering a rate hike that would create an even bigger divergence with the rates in other developed countries? Answer: They probably aren’t.