Federal Reserve Bank of New York President William Dudley said the pace of eventual interest rate increases “will probably be relatively slow,” depending on the economy’s progress and how financial markets react.
A “mild” response “might encourage a somewhat faster pace,” Dudley said today to the New York Association for Business Economics. “If bond yields were to move sharply higher,” on the other hand, “a more cautious approach might be warranted.”
Dudley presented a detailed outline of his thoughts on the economy, monetary policy and the exit strategy, views he is likely to bring to the June 17-18 meeting of the Federal Open Market Committee, the Fed panel that sets interest rates.
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