WASHINGTON — New York Federal Reserve Bank President William Dudley Monday spoke out against calls for the Fed to ease the pace of its aggressive asset purchases, arguing not only has the effect of $85 billion a month in bond buys exceeded his expectations, but that greater harm would come from prematurely shifting to a policy stance that lacks the firepower to ensure a sustainable economic recovery.

He also slammed the negative impact of an even more restrictive fiscal policy on growth this year, saying that economic activity would be even stronger if not for the toll on activity from, among others, the hike in payroll taxes and the $85 billion sequester.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.