New York Fed President William Dudley said Monday that he is in favor of continuing to slowly raise short-term interest rates even with inflation below the central bank’s 2% target. In an interview with the Associated Press, Dudley listed two reasons to continue to raise short-term rates, saying financial conditions have eased even though the Fed has been tightening and the current level of short term rates is “pretty low.” “I would be in favor of doing another rate hike later this year,” if the economy performs as expected, Dudley said.
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