US rate hike timing unclear - NY Fed boss
The timing of US interest rate hikes is still uncertain and the Federal Reserve must watch that the surprising recent weakness in the economy does not foreshadow a more substantial slowdown, an influential Fed official has said.
"The timing of normalisation will be data dependent and remains uncertain because the future evolution of the economy cannot be fully anticipated," New York Fed President William Dudley said in prepared remarks, adding he expects the path of rate hikes to be "relatively shallow."
Weak March jobs figures, as well as softer than expected manufacturing and retail sales data in recent months, was a surprise, Dudley said. But this likely reflected "temporary factors to a significant degree," including the harsh winter in much of the US
"It will be important to monitor developments to determine whether the softness in the March labour market report evident on Friday foreshadows a more substantial slowing in the labour market than I currently anticipate," said Mr Dudley, a permanent voter on Fed policy and a close ally of Fed Chair Janet Yellen.