Fed's Dudley: Must hike more to sustain growth

Economy 6/19/2017, 3:06 PM
Fed's Dudley: Must hike more to sustain growth

If the central bank of the United States brings its tightening cycle to a halt, it would imperil the economy, said William Dudley. Speaking on Monday, the president of the Federal Reserve Bank of New York also claimed such a development would risk prompting a recession. In the official's view, the decrease in Treasury yields don't signal a deterioration for the economy, while they are, he added, still substantially high compared to Japan and the Eurozone. 

Growth and macroeconomic indicators haven't been "restrained very much" by the Fed's strategy, according to the permanent voter on the monetary policy panel. He told the audience at an event in Plattsburg, New York, that the economy is at a "pretty good place to be" with its levels of prices and employment, and that he is very confident about much more expansion ahead, with strong sentiment in the markets. 

Wage growth is mostly in line with trends in productivity, Dudley stated and expected salaries to advance "a bit more" as labor market tightens. He added wages may reach annual increase of 3% in a year or two.    

TeleTrader Newsroom / IT



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