Rate Hike

Fed's Dudley: There Is An Argument For Easing Further

The president of the New York Federal Reserve Bank said Thursday that given his current forecast for the U.

S. economy, there is an argument for further monetary easing, arguing that today's policy makers shouldn't rely solely on the Taylor rule formula to calculate rates.Speaking about the rules and parameters of setting monetary policy at an event in New York, William Dudley said his team's outlook for stable prices and slow path back to full employment still presents a case for further easing. But gauging the costs versus benefits of providing more stimulus is key."As long as the U.S. economy continues to grow sufficiently fast to cut into the nation's unused economic resources at a meaningful pace, I think the benefits from further action are unlikely to exceed the costs," Dudley said in his prepared remarks. "But if the economy were to slow so that we were no longer making material progress toward full employment...then the benefits of further accommodation would increase in my est...

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