Bloomberg News

Fed’s Dudley Says Jobs Report Damps Upbeat Economic Data

April 13, 2012

Federal Reserve Bank of New York President William C. Dudley said the economy may be gaining strength even as the weakest job growth in five months highlights risks to growth.

“The incoming data on the U.S. economy generally has been a bit more upbeat over the past few months, suggesting that the recovery may be finally establishing a somewhat firmer footing,” Dudley said according to the prepared text of a speech to the Buffalo-Niagara Partnership in Buffalo, New York. His remarks on the national economy were the same as in two speeches yesterday in Syracuse.

Dudley said yesterday that the central bank may need to keep interest rates low through 2014 in order to lower unemployment from 8.2 percent, remarks echoed by Fed vice chairman Janet Yellen.

Central bankers next meet in two weeks to consider policy for an economy that Dudley, vice chairman of the policy setting Federal Open Market Commmittee, said may be sapped by cuts in government spending and the European debt crisis. Dudley and Yellen backed Chairman Ben S. Bernanke’s view that progress in reducing joblessness may not be sustained as growth cools.

As president of the New York Fed since January 2009, Dudley, 59, holds a permanent vote on the central bank’s monetary policy committee.

He spoke today on the second day of a two-day tour of upstate New York, which featured speeches in Syracuse, a visit Welch Allyn, a manufacturer of medical devices in Skaneateles Falls, New York.

To contact the reporter on this story: Joshua Zumbrun in Buffalo, New York at jzumbrun@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net


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