new york (reuters) – despite the surprisingly low inflation and the effects of the three hurricanes that make it difficult to interpret the economic data in the united states, one of the forefront of the fed continues to call for a gradual increase in interest rates.
the president of the new york fed, william dudley, reiterated friday, his confidence in the recovery of the us economy, as the dollar’s decline and unemployment fell last month to its lowest level since 2001, supported the continuation of the monetary tightening that began in the year 2015.
even if inflation is somewhat less than the longer term objective, i believe that it is still appropriate to continue to deviate away from a monetary policy accommodation, “he said in a speech at a conference in brooklyn.
according to him, the financial conditions are more relaxed than tightened despite three rate hikes in less than a year.
william dudley is very close to the chairman of the fed, janet yellen, whose term of office ends in early february, and it has a permanent voting rights at meetings of the monetary policy of the institution.
the market is expecting a higher overall rate of the european central bank president in december, but investors are increasingly sceptical about the hypothesis of three increases in 2018.
william dudley, however, suggested that he would keep an open mind in relation to economic data, including inflation figures months due to temporary factors that affect the prices and the hurricanes in the united states over the last 40 days.
(jonathan spicer, claude chendjou for service in french, edited by wilfrid exbrayat)
copyright & copy;, thomson reuters
Translated by forexguides.info Team