Fed's Dudley speaks with reporters ahead of his retirement
He adds:
- fiscal policy to add lots of stimulus to US economy
- need to keep inflation in check to safeguard employment
- rate peak in this cycle may be lower than in past
- says Fed policy to eventually become slightly tight
- rates may have to push slightly above neutral
- fiscal path unsustainable, could affect rates policy through 2020
- sees risk that trade, immigration policies could crimp US economy capacity
Back in November Dudley announced he would retire from the Fed in mid-2018. He is the president of the New York Fed and as such has a permanent spot on the FOMC board.