Economics
Fed's Dudley Says Fiscal Stimulus Outlook Shifts Risks to Upside
- Inflation closer to target and fiscal policy may give a boost
- New York Fed chief favors gradual reduction of balance sheet
Fed's Dudley Says Couple More 2017 Hikes Seems Reasonable
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U.S. government policy may further boost the economy and eventually add fuel an inflation rate that is already approaching the central bank’s official target, said Federal Reserve Bank of New York President William Dudley.
“While there is still considerable uncertainty about fiscal policy and its potential contribution to economic activity, it seems likely that it will shift over time to a more stimulative setting,” Dudley said Thursday in remarks prepared for a speech in Sarasota, Florida. “Consequently, it appears that the risks for both economic growth and inflation over the medium to longer term may be shifting gradually to the upside.”