Economics

Dudley Says He Favors Somewhat Tighter Fed Policy Over Time

  • New York Fed chief says central bank close to its dual mandate
  • Fiscal policy may need to play a bigger role to boost growth

William Dudley

Photographer: Scott Eells/Bloomberg
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Federal Reserve Bank of New York President William Dudley signaled that he approves of higher interest rates over time as the economy continues to improve, while cautioning that fiscal and monetary policy need to work together to secure the longer-term outlook.

“Assuming the economy stays on this trajectory, I would favor making monetary policy somewhat less accommodative over time by gradually pushing up the level of short-term interest rates,” Dudley said Monday at an event in New York.