The Federal Reserve can be "gentle" in removing monetary stimulus since the U.S. economy has "plenty of room to run," New York Fed President William Dudley said on Wednesday.
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"We can be gentle in removing accommodation," Dudley, a close ally of Fed Chair Janet Yellen and a permanent voter on policy, told a business council gathering.
He added that one reason the Fed has been patient in mulling a rate hike this year is that "slack," or underutilized workers, remain in the U.S. labor market.
(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)