Dudley: Fed Rate Hikes Suitable to Counter Overheating Risk

Interest rate rises are appropriate to curb the threat of overheating, according to a Federal Reserve official.

New York Fed President William Dudley said Thursday it deems suitable to cut down on monetary policy accommodation gradually to lower the peril of the economy overhearing as well as avert a substantial inflation overshoot in the medium-term.

He noted the federal funds rate are still unusually low even after the Fed increased rates this month.

Noting significant uncertainties and risks overseas, the Fed official said the economic view abroad seems to improve and the dangers are largely lower than before.

Dudley also said the American economy has continued to grow moderately above its attainable long-term rate. He added inflation and growth threats are off to the upside.

News are provided by InstaForex