Dudley: Faster Growth Not a Reason to Tighten

New York Federal Reserve Bank president William Dudley made clear Monday that, as far as he is concerned, any tightening of monetary policy remains far off.

Dudley, the vice chairman of the Fed’s policymaking Federal Open Market Committee, and whose bank implements policy, said there should be no doubt about the Fed’s willingness to eventually tighten in “a timely manner.” He also vowed that the Fed will “not lose control of monetary policy.”

But, in remarks prepared for delivery to New York University’s Stern School of Business, he envisioned short-term interest rates staying “unusually low” for “an extended period” unless the economy grows so unexpectedly rapidly that resource slack is eliminated or inflation expectations rise suddenly.

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