Economics
Dudley Backs Higher Rates, Says Low Inflation May Be Structural
- New York Fed chief expects continued removal of accommodation
- Economic fallout from hurricanes tends to be transitory
Fed's Dudley Backs Rate Hikes
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Federal Reserve Bank of New York President William Dudley, one of the country’s most influential monetary policy makers, reiterated the need to continue raising interest rates while conceding that the U.S. central bank’s inflation model may be in for a rethink soon.
“I expect that the U.S. economy will continue to perform quite well, with slightly above-trend growth leading to further gradual tightening of the U.S. labor market," Dudley said Thursday in remarks prepared for a speech in New York. “As this occurs, I would anticipate that wage growth will firm and that price inflation will gradually rise. In response, I expect that we will continue to gradually remove monetary policy accommodation.”