Dudley Says a Couple More Hikes Seem Reasonable
- New York Fed chief discusses FOMC outlook for three ’17 moves
- Fed may allow balance sheet to shrink starting later in year
Federal Reserve Bank of New York President William Dudley talks about the Fed's rate hike path as he sees the FOMC at a 'reasonable place.' He speaks with Bloomberg's Michael McKee on 'Bloomberg Daybreak: Americas.' (Source: Bloomberg)
Federal Reserve Bank of New York President William Dudley said three interest-rate hikes in 2017 is a “reasonable” projection and that the central bank may also begin shrinking its balance sheet later this year or in 2018, possibly pausing rate increases in the process.
The median projection for three hikes from the 17 members who comprise the rate-setting Federal Open Market Committee “I think is in a reasonable place,” Dudley said Friday in a Bloomberg Television interview with Michael McKee in Sarasota, Florida. “A couple more hikes this year seems reasonable.”