Market expectations that U.S. interest rates will start to lift off sometime in mid-2015 are reasonable, New York Federal Reserve President William Dudley said on Thursday.
Dudley, answering questions at a luncheon hosted by the United Arab Emirates central bank in Abu Dhabi, also said recent U.S. non-farm payrolls data had been very consistent with previous releases, and had not changed his policy outlook in any meaningful way.
“What I can tell you is that we are making progress toward our objectives but there is considerable further progress still to go,” he said. “I think the market expectations that expect us to lift off sometime around the middle or somewhat later next year are reasonable expectations.”
Dudley said, however, that he could not give the likely timing for when the Fed would start raising interest rates, as it would depend on how the U.S. economy was evolving and how financial markets were reacting.
“No, I cannot give you more specifics and the long answer is: because I do not know. It really depends on how the economy evolves and how we progress toward our objectives of maximum sustainable employment in the context of price stability.”