New York Fed president William Dudley expects the Fed to proceed with its asset reduction plan at the September FOMC meeting.
Dudley is upbeat on economy’s underlying trajectory and claims Hurricanes May Have Temporary Effect on Hike Timing.
Federal Reserve Bank of New York President William Dudley said back-to-back hurricanes in the third quarter could temporarily influence the timing of the next interest-rate increase, although above-trend growth does warrant continued gradual rate hikes.
The Fed is expected to announce the start of a gradual process to shrink its $4.5 trillion balance sheet at its Sept. 19-20 meeting in Washington while keeping rates on hold amid a spate of disappointingly weak readings on inflation. U.S. central bankers hiked in March and June, and in June forecast they would raise a third time this year to a range of 1.25 percent to 1.5 percent.
“It’s too soon to judge exactly the…
View original post 205 more words