WASHINGTON — The "tug-of-war" between an improving U.S. economy and the current drag on growth from spending cuts and increased taxes means there remains a high level of uncertainty regarding the near-term economic outlook, New York Federal Reserve Bank President William Dudley said Monday.

In a speech to open a New York Fed policy conference, Dudley - who also serves as vice chair of the policy-setting Federal Open Market Committee - said he continues to believe the central bank's aggressive measures to support the recovery have yielded better than expected, while the costs remain the same or lower.

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