Noticia de Mayo
New York Fed President Sees Inflation Drifting Up
William Dudley, the president of the New York Federal Reserve, said on Tuesday he expected inflation to drift higher over the remainder of the year, though “excess capacity” in the economy is helping to moderate price pressures. Mr. Dudley’s remarks come as the Fed grapples with several major issues, including when to raise interest rates, and when to start scaling back its more than $4 trillion balance sheet. After more than five years of highly accommodative monetary policy, including near zero interest rates and bond purchases, the Fed is facing pressure from policy hawks to tighten and raise rates more quickly. Mr. Dudley has tended to join the Fed chairwoman, Janet Yellen, in a more dovish stance. That was reflected in his remarks on Tuesday at a lunch hosted by the New York Association for Business Economics.
Speaking at an event in New York, Mr. Dudley said that while headwinds are growing less severe, the trajectory of economic growth continues to disappoint. He also made a point to say that inflation is rising but dot sharply, and that the Fed’s 2 percent inflation target is not a ceiling.
“I would expect that we would spend as much time slightly above 2 percent as below it, recognizing that we will hardly ever be exactly at 2 percent because of the inherent volatility in prices,” he said. In 2011, the Fed outlined its so-called exit strategy in which halting reinvestments was the first step to shrinking its balance sheet, which now tops $4 trillion, down to around $1 trillion. If the Fed sticks to plan, a decision to stop reinvesting bond proceeds from Treasuries and mortgage-backed securities would precede any increase in interest rates and mark the beginning of the Fed’s first tightening cycle since 2004-2006.
Key Words: New York, Inflation, William Dudley, $4 Trillon, monetary policy
"He also say that inflation is rising but don't sharply, and that the Fed’s 2 percent inflation target is not a ceiling."
Palabras claves: Nueva York, inflación, William Dudley, $ 4 Trillon, la política monetaria
"Él también dice que la inflación está aumentando, pero no bruscamente, y que la meta de inflación del 2 por ciento de la Fed no es un techo"
Referencia
New York Times. (2014). "New York Fed President Sees Inflation Drifting Up". New york times. [En linea] URL: http://www.nytimes.com/2014/05/21/business/economy/new-york-fed-president-sees-inflation-drifting-up.html?ref=economy
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