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"The
situation changed over the last few months," Dudley told
CorrierEconomia last Thursday on the sidelines of a conference
at the Brookings Institutions in Washington.
"It's true we thought we could raise interest rates by the end
of 2015, but turbulence on financial markets, modest global
growth, energy prices and macro-prudential imbalances are
slowing this process down."
He added that it was "still too early to think about raising
interest rates".
Speaking at the Brookings Institution last Thursday, Dudley said
he would be prepared to raise interest rates in December if the
U.S. economy performed in line with his forecast of continued
moderate growth.
The Fed surprised half of Wall Street in September by holding
rates steady rather than hiking. Fed Chair Janet Yellen and
other officials have said they expect a rate hike will be needed
by the end of this year, but two Fed governors last week urged
caution.
Dudley told CorrierEconomia that it would be a "big mistake" to
ignore the fact that the global economy is growing only
moderately.
The economic insert of Corriere della Sera also quoted Dudley as
saying that the Federal Reserve had to look at the global
picture but the state of the U.S. economy remained key.
"For me there are some data that have greater importance … for
example we need to see a bigger improvement in the U.S. labor
market."
"We'll have lots of data from now until the end of the year so
let's see first what comes out and then we will decide," Dudley
was quoted as saying.
Many Fed watchers have been left exasperated by the mixed
messages from the U.S. central bank in recent weeks.
(Reporting by Francesca Landini; Editing by Catherine Evans)
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