New York Fed president William Dudley backs Janet Yellen’s view on tighter monetary policy
New York/Washington — Federal Reserve Bank of New York president William Dudley aligned himself with chairwoman Janet Yellen in declaring his expectation that a tight labour market will eventually trigger a rebound in inflation data — which has been unexpectedly weak in recent months. "We’re pretty close to what we think is full employment," Dudley said on Monday in Plattsburgh, New York. "Inflation is a little bit lower than what we would like, but we think if the labour market continues to tighten, wages will gradually pick up, and with that, we’ll see inflation get back to 2%." Later on Monday, Chicago Fed president Charles Evans said that with inflation stubbornly soft despite a 16-year low in the US unemployment rate, it may be worthwhile for the US central bank to wait until year-end to decide whether to raise interest rates again. Yields on US Treasuries rose and the dollar advanced after Dudley’s comments. Fed officials last week raised their benchmark interest rate for the ...
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