Economics

Dudley Calls for `Cautious and Gradual' Fed Tightening Path

  • New York Fed chief says risks still tilted to the downside
  • Confidence in inflation outlook higher than earlier this year

William C. Dudley.

Photographer: Scott Eells/Bloomberg
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Uncertainty over the outlook for the U.S. economy is higher than usual, which calls for a “cautious and gradual approach” to interest-rate increases, Federal Reserve Bank of New York President William C. Dudley said.

Dudley, Friday in Bridgeport, Connecticut, echoed recent comments from Fed Chair Janet Yellen, who said March 29 that the presence of downside risks to the outlook meant it was appropriate to “proceed cautiously in adjusting policy.”