Economics

Dudley Says Economic Outlook Little Changed Since Rate Rise

  • Brushes off weak data and a drop in inflation expectations
  • Fed, markets diverge on trajectory for 2016 rate increases
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The U.S. economy should continue to grow faster than its potential this year, supporting further interest-rate increases by the Federal Reserve, New York Fed President William C. Dudley said.

Dudley downplayed a recent string of weak economic data, prospects for “greater turbulence” in global financial markets driven by emerging-market weakness, and a drop in inflation expectations at a time price gains are lagging the central bank’s 2 percent objective.