Fed's William Dudley Doesn't See Change Coming for Monetary Policy
Tweet
Share
E-mail
Federal Reserve Bank of New York President William Dudley said Monday that the U.S. economy it unlikely to grow at a fast enough pace over the coming months to allow for a change in monetary policy.
“The economic outlook has improved considerably,” and “a wide range of indicators show a broadening and strengthening of demand and production,” Dudley said. “We are still very far away from achieving our dual mandate of maximum sustainable employment and price stability.”
Dudley did say that the economy is showing some signs of life as household and financial company balance sheets are improving .
The Fed said in November announced a plan to buy $600 billion in treasuries through June in a second round of quantitative easing aimed a fighting inflation that is stubbornly low, while creating jobs.
“Barring a sustained period of economic growth so strong that the economy’s substantial excess slack is quickly exhausted or a noteworthy rise in inflation expectations, the outlook implies that short-term interest rates are likely to remain unusually low for ‘an extended period,’” Dudley said.
Dudley added that there are conflicting signals coming from the labor markets, saying “I do expect that payroll employment growth will increase considerably more rapidly in the coming months.”
The central banker believes that the Fed's monetary policy has had positive effects on the economy, and he does not see financial markets becoming imbalanced as a results of the policies.
“The economic outlook has improved considerably,” and “a wide range of indicators show a broadening and strengthening of demand and production,” Dudley said. “We are still very far away from achieving our dual mandate of maximum sustainable employment and price stability.”
Dudley did say that the economy is showing some signs of life as household and financial company balance sheets are improving .
The Fed said in November announced a plan to buy $600 billion in treasuries through June in a second round of quantitative easing aimed a fighting inflation that is stubbornly low, while creating jobs.
“Barring a sustained period of economic growth so strong that the economy’s substantial excess slack is quickly exhausted or a noteworthy rise in inflation expectations, the outlook implies that short-term interest rates are likely to remain unusually low for ‘an extended period,’” Dudley said.
Dudley added that there are conflicting signals coming from the labor markets, saying “I do expect that payroll employment growth will increase considerably more rapidly in the coming months.”
The central banker believes that the Fed's monetary policy has had positive effects on the economy, and he does not see financial markets becoming imbalanced as a results of the policies.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- If you too like a good mystery, then you like the U.S. economy - Barkin
- Fed's Hammack: Would Probably Need 'some Number' Of Rate Hikes
- Why Wednesday's inflation print could provide the next dovish catalyst
Create E-mail Alert Related Categories
Fed, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
