Fed's Dudley Says Strong Dollar, Cheap Oil Are Drags On U.S. Economy

WASHINGTON (marketWatch) - New York Federal Reserve President William Dudley on Monday said a stronger dollar has given a "significant shock" to the U.S. economy and that lower oil prices will exert a "meaningful drag" on growth because of lower investment in the vibrant domestic energy industry. Still, he said he expects U.S. growth to pick up after a weak first quarter that largely reflects "temporary factors," with the economy expanding at a similar pace to 2014 and 2013. By the end of the year he predicts the unemployment rate could drop to 5% from 5.5%.