Economics
Dudley Says Fed May Begin Paring Balance Sheet This Year or Next
- ‘We are pretty close to full employment’ in U.S., he says
- New York Fed chief says wants balance sheet to be minor event
Rivlin Sees Fed Staying on Track Despite Uncertainty
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The Federal Reserve is on track to begin unwinding its balance sheet this year or next, although U.S. central bankers are not in a rush to tighten and will take care to ensure their actions don’t trigger disruptions that harm the global economy, Federal Reserve Bank of New York President William Dudley .
“We are pretty close to full employment,” Dudley said Thursday while answering questions after a speech in Mumbai. “Inflation is just a little bit below our target of 2 percent if you look at the underlying inflation trend, so clearly if the economy continues to grow above trend we are going to want to gradually remove monetary policy accommodation.”