Economics

Dudley Doesn't See ‘Compelling’ Case for Faster Fed Rate Hikes

  • NY Fed chief says strong economic growth will boost inflation
  • Still more slack than U.S. unemployment rate suggests: Dudley

 New York Fed President  William Dudley

Photographer: Andrew Harrer/Bloomberg
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Strong economic growth and higher inflation don’t necessarily mean Federal Reserve officials should speed up interest-rate increases, New York Fed President William Dudley said.

“Even though the unemployment rate is low, inflation remains below our 2 percent objective. As long as that is true, the case for tightening policy more aggressively does not seem compelling,” Dudley said Wednesday in remarks prepared for a speech in the Bronx.