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Dudley Plays Down Suggestion of September Fed Rate-Hike Pause

  • Sees Fed raising rates above 3% peak now priced in markets
  • Unemployment needs to rise to 4% or even higher, Dudley says
Bloomberg business news
Dudley Says Fed Needs to Loosen Up Tight Labor MarketSource: Bloomberg

Former New York Fed President William Dudley said the US central bank will keep raising interest rates to curb high inflation, dismissing speculation that it will hold fire in September.

“The Fed is pretty convinced that they need to go to something close to neutral, expeditiously,” he said in an interview Wednesday on Bloomberg Surveillance. “The notion that at some point they are going to take a pause and look around -- of course that’s going to happen at some point -- but it’s going to be driven by the economic data.”