Federal Reserve Bank of New York

Inflation and the unemployment rate will determine if monetary policy will need to become restrictive in the coming years, Federal Reserve Bank of New York President William Dudley said Wednesday.

John Williams, who takes the helm of the powerful Federal Reserve Bank of New York in June, played down risks the yield curve would become inverted as the U.S. central bank gradually raises interest rates.

Prices received increased in April, to a level not seen in more than six years, while wage growth slowed.

Federal Reserve Bank of New York President William Dudley said the central bank will stay on its gradual path of raising interest rates unless inflation moves up by “an appreciable margin.”

Prices paid remain elevated, while the future outlook sank.

Consumers’ inflation expectations held steady, but respondents’ optimism about labor conditions and income slipped.

Federal Reserve Bank of San Francisco President John C. Williams has been selected to become president and chief executive officer of the Federal Reserve Bank of New York.

The Federal Reserve is facing a backlash over its lack of diversity in key positions after it emerged this weekend that John Williams, the current president of the San Francisco regional branch, is a front-runner to succeed William Dudley as head of the powerful New York Fed.

Directors at the Federal Reserve Bank of New York said they had narrowed their search for the bank’s next president to a “handful of final candidates,” without naming any.

Prices received increased in March, to a level not seen in six years, while wage growth was steady.