The economy needs to meet the Fed's expectations before it slows asset purchases, according to Federal Reserve Bank of New York President and Chief Executive Officer William C. Dudley.
Monetary policy "depends on the progress we make towards our objectives," he said according to prepared text of a press briefing, released by the Fed. "This means that the policy-including the pace of asset purchases-depends on the outlook rather than the calendar. … Economic circumstances could diverge significantly from the FOMC's expectations. If labor market conditions and the economy's growth momentum were to be less favorable than in the FOMC's outlook-and this is what has happened in recent years-I would expect that the asset purchases would continue at a higher pace for longer."