Dudley understands...

...that wage pressure is "the game".  And here is where the causality chicken and egg game begins and why Fed watching is an infuriating avocation.  Do anticipated Fed actions cause market fluctuations (yes), or is the opposite more true?

But, he added, the U.S. central bank will need to "determine whether the softness in the March labor market report ... foreshadows a more substantial slowing in the labor market than I currently anticipate."

The job market had been a lone bright spot in the world's largest economy. But it has ebbed and then slowed sharply last month, reinforcing the notion the Fed would delay an initial rate hike until later in 2015 or even 2016.