A rate hike is still likely this year, despite some new uncertainty about the pace of economic growth, said William Dudley, the president of the New York Fed, on Friday. "I still think it is likely that conditions will be appropriate to begin monetary policy normalization later this year," Dudley said in a speech prepared for delivery to a business group in Minneapolis. The New York Fed president, who always is a voting member of the Fed policy committee, said he has become more uncertain about the growth outlook given the lack of a sharp rebound in activity in recent months from the weak first quarter. On the other hand, Dudley said he was becoming more confident with his forecast that inflation will move up toward the Fed's 2% annual rate target. Dudley said he expects some market turbulence when the Fed raises rates for the first time.
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