MADRID (Marketwatch) -- Unemployment that's too high and inflation that's too low mean it's "still premature" to raise U.S. interest rates, said New York Federal Reserve President William Dudley on Thursday. The comments came from prepared remarks from Dudley who was speaking at the Central Bank of the United Arab Emirates, Abu Dhabi, United Arab Emirates. He said U.S. rates should rise sometime next year, "if all goes well," but noted that the shift in policy will trigger market turbulence, especially within emerging-market countries. Dudley said U.S. growth is unlikely to disappoint as various "headwinds" have subsided, such as lack of credit availability and excess housing. He also said given the still-high level of unemployment, there could be a benefit to letting the economy run "slightly hot" for awhile in order to get those people working again. The comments echo remarks he made just over a week ago Dudley also said when he also said U.S. rates would likely go up next year. A day ago, Philadelphia Fed President Charles Plosser said interest rates should be raised "sooner rather than later.
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