But he says there is still uncertainty about whether labor market will keep improving.
U.S. central bankers are still likely to start raising interest rates this year if the labor market improves further, though the jobs outlook has become more uncertain, said William C. Dudley, president of the Federal Reserve Bank of New York.
“If the labor market continues to improve and inflation expectations remain well-anchored, then I would expect — in the absence of some dark cloud gathering over the growth outlook — to support a decision to begin normalizing monetary policy later this year,” Dudley, who has a permanent vote on the policy-setting Federal Open Market Committee, said in remarks prepared for a speech Friday in Minneapolis.
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