Dudley Backs Low-Rate Outlook, Voices Concern on Bond Buying
Federal Reserve Bank of New York President William C. Dudley said the Fed should hold the main interest rate near zero through 2014, while voicing concern more central bank bond-buying would spark anxieties about inflation.
“I haven’t seen any set of information that should suggest to me we should change that view,” Dudley said today, referring to the Fed’s outlook for keeping interest rates close to zero at least through late 2014.
A new round of asset purchases by the central bank, known as quantitative easing, may “create more anxiety on the part of some that it would lead to future inflation,” Dudley said in response to audience questions after a speech in Syracuse, New York. “It’s not free to do another round of quantitative easing.”
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