QE3 timeline was clarification, not 'signal to market' -Fed's Dudley

Reuters

Ben Bernanke was "very clear" last week when the Federal Reserve chairman explained how the U.S. central bank plans to reduce accommodation, and he did not intend to send a "signal to the market," New York Fed President William Dudley said on Thursday.

While the resulting rise in longer-term rates and tighter financial-market conditions can hurt the U.S. economic recovery, Dudley added, incoming economic data are more important as the Fed decides how to adjust its policies.

Continue Reading Below

(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)