A sharply stronger dollar could hamper Federal Reserve efforts to spur growth and lift inflation, a senior Fed official said today, in unusually direct remarks about the U.S. currency from the central bank.
“If the dollar were to strengthen a lot, it would have consequences for growth,” Federal Reserve Bank of New York President William C. Dudley said in an interview at the Bloomberg Markets Most Influential Summit in New York.
The Bloomberg Dollar Spot Index has touched the highest level on a closing basis since June 2010 amid bets that the Fed will raise interest rates in mid-2015, ending a near-zero rate policy in place since December 2008.
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